Analysis from MarketScout reveals that U.S. commercial lines and U.S. personal lines both saw average rate increases during the third-quarter of 2017, maintaining recent trends.
During the third-quarter of 2017 the composite rate for U.S. commercial lines increased by an average of 1%, which is in line with the previous quarter and above the 1% decline reported in Q3 2016, according to analysis from MarketScout, accompanied by commentary from Keefe, Bruyette & Woods
Chief Executive Officer (CEO) of MarketScout, Richard Kerr, said; “Rates are trading on a quarter-to-quarter basis in a very tight range. The market seems to be seeking a direction but with no real impetus, except for the property market, to go one way or the other. The recent hurricanes have not impacted property rates for the third quarter; however, adjustments in property rates will be recognized in the fourth quarter of 2017.”
According to analysis from MarketScout, personal lines average 2% in the third-quarter of 2017, compared with 2.5% in the previous quarter.
“The impact of the recent hurricanes has not been reflected in the third quarter rates. We expect fourth quarter 2017 rates will move based upon the ultimate insured losses, which are still largely unknown. We are closely monitoring the losses in the Caribbean and Puerto Rico. The ultimate total insured loss will impact rates in the mainland US. Caribbean and Puerto Rican insurers are different from those on the mainland US; however, the reinsurance markets are often the same,” said Kerr.
For commercial lines, property increased by an average of 1%, as did BOP, general liability, umbrella/excess, professional liability, D&O liability, and EPLI. Workers’ compensation fell by an average of 2% in the period, while commercial auto was actually up by 5%.
Business interruption, inland marine, fiduciary, crime, and surety remained flat in the third-quarter.
For personal lines, homeowners under $1 million value increased by an average of 3%, while homeowners over $1 million value increased by an average of 2%. Automobile also increased by 2%, and personal articles increased by an average of 1%, in Q3 2017.
