The average composite rate for property/casualty insurance placements in the United States was up 5 percent for May 2013, according to MarketScout’s monthly market barometer. While personal lines’ composite rate growth accelerated slightly, commercial rates experienced a 5-percent increase for the third straight month.
Breaking down the commercial rates by coverage classification, business-owners policies (BOP), crime and fiduciary were slightly less expensive than the prior month. D&O, general liability and EPLI policies all experienced higher rates on a month-to-month comparison.
Medium-sized accounts ($25,001 to $250,000) decreased in premium compared to the prior month, as did large accounts ($250,001 to $1,000,000).
By industry classification, manufacturing and public entities measured a small premium decrease from the prior month. Transportation accounts were assessed an increase in premium.
For personal lines, the composite rate grew from a 3-percent increase in April to 4-percent growth in May 2013.
“Regardless of the value of your home, most insureds had premium increases for renewals in May,” said Richard Kerr, CEO of MarketScout. “Perhaps the numerous tornadoes or the pending hurricane season had an impact on pricing. We feel the increases are driven more by underwriter’s sentiment than actuarial projections.”
Homes of all values were assessed a 4-percent rate increase. Automobile rates also increased, from plus-3 percent in April to plus-4 percent in May 2013. Personal articles premiums remained the same at plus-3 percent.
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