Commercial rates in the US went up 3.9% on all property and casualty placements in the first quarter of 2024, a notable decline compared to the plus 5.6% in Q4 2023, while personal insurance rates held steady at plus 4.75% in the period, according to MarketScout.
“January and February posted very modest rate increases; however, rates were trending upward more aggressively in March,” said Richard Kerr, CEO of Novatae Risk Group.
Noting: “Property insurers are nervous about the 2024 catastrophe season. Liability insurers are more calm but economic conditions and incurred, but not yet reported, claim estimates may impact rates later in 2024.”
Among all coverages, auto and property insurance rates remain the highest at plus 6.7% and plus 6.3% respectively. By industry group, transportation risks are being assessed with the highest rate increases at plus 6.7%.
In Q1 2024 Business Interruption rates were up 5%, BOP up 3.7%, Inland Marine up 3.3%, and General Liability up 3.25% as well as Umbrella/Excess which was up 6.3%, Professional Liability up 3.7% and D&O Liability up 2.7%.
EPLI rates went up only 1% as well as Fiduciary and Surety, Crime was up 1.3%, while Workers’ Compensation remained flat at 0%.
Regarding personal lines, rates have held steady at plus 4.75% in Q1 202 the composite personal lines rate from the fourth quarter 2023 to the first quarter of 2024 held steady at plus 4.75%.
Kerr commented: “Personal lines insurance rates continue to increase. Insurers are carefully watching as forecasters expect an active hurricane season in 2024. This certainly doesn’t make underwriters want to reduce rates any time soon.
“Also, capacity for some major insurers has been greatly restricted in CAT-prone areas while other insurers have been downgraded or left CAT areas altogether. This activity will result in higher homeowners rates next quarter.”
According to MarketScout’s analysts, homeowners under $1,000,000 value has gone up 4.7% while homeowners over $1,000,000 value went up 5.3%. Automobile was up 5.3%
And Personal Articles up 3.7%
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions.
These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the US, the company noted.
