The composite rate for U.S. commercial lines Ã¢â‚¬“ commercial property, casualty and professional lines coverage Ã¢â‚¬“ was up 3 percent in April 2012 compared to a year ago, according to the latest analysis from online insurance exchange MarketScout.
WorkersÃ¢â‚¬â„¢ compensation and property coverage rates rose the most at plus 4 percent, the same as in March 2012. BOP and general liability were up 3 percent.
While historically there has been a considerable difference in the underwriting approaches among the various types of insurers, recently MarketScout has noticed that both admitted and non-admitted insurers are pricing similarly.
Richard Kerr, CEO of MarketScout, suggested this could mean a boost in business for non-admitted insurers in future:
The recent similar pricing strategies could ultimately lead to more business for the non-admitted insurers as admitted insurers begin to restrict their risk appetite and simply decline to write tougher accounts.Ã¢â‚¬
The I.I.I. defines admitted insurers as those licensed to do business in a particular state. Non-admitted insurers are licensed in some states, but not others. States where an insurer is not licensed call that insurer non-admitted. They sell coverage that is unavailable from licensed insurers within the state.
Check out furtherÃ‚ I.I.I. information on industry results and market conditions.