Advertise here

Menu

Reinsurance News

U.S commercial rates continue stable rise over Q4: MarketScout

10th January 2019 - Author: Matt Sheehan

The U.S commercial insurance composite rate continued to rise by a modest but stable 2% over the fourth quarter of 2018, according to data from MarketScout, a U.S electronic insurance exchange and specialty MGA.

industry-growth-graphMarketScout noted that this result was in line with the composite rate increase for the entire year of 2018, which averaged at 2%.

The firm’s previous analyses found that U.S commercial rates rose by 2% in Q1 2018, 2.5% in Q2, and 2.5% in Q3.

Richard Kerr, Chief Executive Officer (CEO) of MarketScout, commented on the results: “Ample capacity remains in the commercial insurance market.”

“Rates for all coverage classifications other than workers’ compensation are increasing at a controlled, slow pace,” he continued. “Only transportation and commercial auto exposures are suffering large rate increases.”

By coverage class, transportation and commercial auto saw the most notable increases in Q4, posting rate rises of plus 6% and 7%, respectively.

Business interruption also performed well at 3%, while commercial property rose 2.5% and BOP, general liability, umbrella/excess and EPLI all saw increases of 2%.

Additionally, professional liability and D&O liability rose by 1.5%, while inland marine, fiduciary, crime and surety classes increased by 1%.

Workers’ compensation was the only class to see rates fall, although to a lesser extent than in the previous quarter, posting decreases of 1.5% in Q4, compared to 3% in Q3.

Breaking rate movements down by account size, MarketScout found that small sized accounts (up to $25,000) increased by 2.5% in over Q4, while medium sized accounts ($25,001 – $250,000) increased by 1.5%.

Additionally, large sized accounts ($250,001 – $1 million) were up by 2.5% and jumbo sized accounts (over $1 million) saw increases of 2%.

MarketScout’s analysis of market conditions utilises pricing surveys conducted by the National Alliance for Insurance Education and Research.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Beazley targets Hong Kong expansion via Pegasus Underwriting partnership

Specialist re/insurer Beazley has announced that it plans to expand its insurance offering in Asian markets through a new financial...

Close