MarketScout has reported that composite US commercial insurance rates were steady in Q2 2023, with business across the country seeing an average rate increase of 5% in the quarter.
Richard Kerr, CEO of MarketScout and Novatae Risk Group, commented, “While the composite rate held steady in the second quarter, there was some movement in various lines of insurance. Property, business interruption, general liability and umbrella/excess rates increased, while most other coverage classifications softened a bit.”
Rates increased very slightly in all size categories, and by industry classification, transportation continued to be assessed with the largest rate increase at 7.3%.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. The surveys have only further corroborated MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
By coverage class, the highest rate increase remained in cyber at 13.3%. Commercial property was up 10.7%, followed by commercial auto with an increase of 8%.
Two classes reported a rise of 7%, general liability and umbrella/excess. Meanwhile, business interruption was up 6%, BOP increased by 3.2%, and inland marine rose 5%.
Professional Liability and D&O Liability both saw increases of 4.7%, while EPLI was up 4%.
There was only a slight movement in workers’ compensation of 0.3%, fiduciary at 1.7%, and crime and surety by 1%.
MarketScout has also made a distinction by account sizes categorising them as small accounts of $25,000 rising by 5.7%, while medium accounts classified as $25,001 – $250,000 increased 6%.
While large accounts classified as $250,001 – $1 million also rose 6%, leaving lastly the jumbo accounts over $1 million at a rise of 4.7%.
