Data from MarketScout shows that US property and casualty (P&C) rates continued to increase over the first quarter of 2021, as underwriters successfully pushed for rates across the board.
Umbrella, professional liability and D&O led the way with double digit rate increases, and larger accounts were generally priced more modestly than medium and small accounts, MarketScout found.
Habitational and transportation industry groups reflected the highest rate increases, and even workers’ compensation rates were up at plus 1.7%.
“Because the property market is so large, the composite rate is tempered by placements across the US,” explained Richard Kerr, CEO of MarketScout.
“In CAT prone areas, rates were up significantly more than the composite rate of 8.6 percent,” Kerr added, “We expect rate increases to continue for the remainder of 2021.”
By coverage class, umbrella/excess saw the largest increase at 14%, followed by D&O liability at 11.6%, then professional liability at 11.3%, commercial auto at 8.7%, and commercial property at 8.6%.
Business interruption, general liability and EPLI rates all increased 6% over Q1, while BOP was up 4.7%, and inland marine increased 4.3%.
On the lower end, fiduciary rates were up 2.7%, with crime up 2.3% and surety and workers’ compensation both up 1.7%.
By account size, small accounts (up to $25,000) saw rate increases of 6.3% in Q1, MarketScout reported, while medium accounts ($25,001 – $250,000) were also up 6.3%.
Both large accounts ($250,001 – $1 million) and jumbo accounts (over $1 million) saw rate increases of 8.3% for the quarter.
Turning to the US personal lines market, MarketScout data shows a composite average rate increase of 5.6% in the first quarter 2021 as compared to 6.3% in the last quarter of 2020.
“While rates moderated slightly, the market continues to harden for homeowners in Florida and California. Insurers are cutting back and homeowners are paying the price,” Kerr continued.
“If you own a CAT exposed home in Florida or in a wildfire prone area in California, the rate increases can be as much as 25 to 30 percent.”
