The softening commercial insurance market has begun to moderate after months of declining rates, a new report from MarketScout suggests.
According to the company survey, the composite rate for commercial insurance placed in the US slowed to -1% from -2% in May. Business owners policies, umbrella and professional liability all moderated by 1% in June as compared to the prior month. EPLI rates, meanwhile, were up 1% while commercial auto rates moved from flat to +2%.
By industry class, all apart from habitational and transportation moderated by 1%. Habitational rates were unchanged at -2%, while rates for transportation accounts moved significantly from -2% to +1%.
Account sizes also remained virtually unchanged. Medium ($25,001 to $250,000) and large ($250,001 to $1,000,000) accounts moderated to -1% and 2% respectively.
“Insurers are getting tired of cutting rates,” Richard Kerr, chief executive of MarketScout concluded.
“There are still pockets of very competitive business; however, it is beginning to look like insurers are willing to maintain the rate reductions of the past few years and not cut rates even further.”
A summary of the June 2016 rates by coverage, industry class and account size include:
| By Coverage Class |
| Commercial Property |
Down 2% |
| Business Interruption |
Down 1% |
| BOP |
Down 1% |
| Inland Marine |
Down 1% |
| General Liability |
Flat |
| Umbrella/Excess |
Down 1% |
| Commercial Auto |
Up 2% |
| Workers’ Compensation |
Down 1% |
| Professional Liability |
Down 2% |
| D&O Liability |
Down 1% |
| EPLI |
Up 1% |
| Fiduciary |
Down 1% |
| Crime |
Up 1% |
| Surety |
Flat |
| |
| By Account Size |
|
| Small Accounts |
Down 1% |
|
| Up to $25,000 |
|
| |
|
| Medium Accounts |
Down 1% |
|
| $25,001 – $250,000 |
|
| |
|
| Large Accounts |
Down 2% |
|
| $250,001 – $1 million |
|
| |
|
| Jumbo Accounts |
Down 3% |
|
| Over $1 million |
|
| |
|
| |
|
| By Industry Class |
| Manufacturing |
Down 2% |
|
| Contracting |
Down 1% |
|
| Service |
Down 1% |
|
| Habitational |
Down 2% |
|
| Public Entity |
Down 1% |
|
| Transportation |
Up 1% |
|
| Energy |
Down 1% |
|
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US property/casualty rates flatten: Report
P/C lines fall in March insurers prepare for soft market
