US commercial insurance rates continue to grow slowly, up an average 1% in November, a report from the MarketScout insurance exchange shows.
By class, the only significant positive movement occurred in commercial property and commercial auto coverage, which both grew a percentage point to +2%. Different industry classifications also showed positive movement, with service and transportation both increasing one percentage point from October to +2% and +3%, respectively.
Surety was the only coverage class to decline or remain flat, down +1%, and contracting accounts represented the largest industry decline, down from +3% to +2%. Manufacturing risks also saw a drop from +2% to +1%.
By account size, small accounts (up to $25,000) and medium accounts ($250,001 to $1 million) were up 2%, while large accounts were up 1%. Jumbo accounts remained flat.
“We still have not measured any line of business that registers a rate decline as compared to the prior year,” said MarketScout CEO Richard Kerr. “Surety rates and jumbo accounts are flat. Every other measurement is still showing at least a very slight rate increase.”
Full MarketScout results include:
| By Coverage Class |
| Commercial Property |
Up 2% |
| Business Interruption |
Up 1% |
| BOP |
Up 2% |
| Inland Marine |
Up 1% |
| General Liability |
Up 2% |
| Umbrella/Excess |
Up 2% |
| Commercial Auto |
Up 3% |
| Workers’ Compensation |
Up 1% |
| Professional Liability |
Up 2% |
| D&O Liability |
Up 2% |
| EPLI |
Up 2% |
| Fiduciary |
Up 1% |
| Crime |
Up 1% |
| Surety |
Up 0% |
| By Industry Class |
| Manufacturing |
Up 1% |
| Contracting |
Up 2% |
| Service |
Up 2% |
| Habitational |
Up 1% |
| Public Entity |
Up 1% |
| Transportation |
Up 3% |
| Energy |
Up 2% |
The results fall in line with an overall third quarter growth of 3%, as tracked by Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS). Price changes are nearly at the same level as last quarter, following a trend of moderation in five consecutive quarters.
“After many quarters of moderation in price increases, we are seeing a lull,” said Alejandra Nolibos, director in Towers Watson’s Americas P&C practice. “We are seeing this for many of the lines surveyed, but I would highlight property. Last quarter, we noted price changes for that class had reached negative territory; recent data, however, indicate flat pricing. Increases in workers compensation pricing, on the other hand, continue to moderate.”
You may also be interested in: "Some personal lines agents are 'sacrificing coverage' for rate reductions"
"43% of commercial lines business written by 15 brokers"
"Nearly 2 in 5 Americans say workers' comp claimants are lazy"
