Thursday, February 7, 2013
Another day, another survey on pricing suggests that commercial insurance rates across the United States are continuing their upward trajectory.
Online insurance exchange MarketScout reports that the composite rate for commercial lines increased 5 percent in January 2013.
Commercial property and general liability rates led the way with an increase of 6 percent, followed by BOP and commercial auto increasing at 5 percent.
By industry class, transportation and manufacturing risks led the rate increases at plus 6 percent.
By account size, small sized accounts (premiums up to $25,000) increased 6 percent, while medium accounts ($25,001 to $250,000) were up 5 percent. Large accounts ($250,001 to $1 million) were up 4 percent and jumbo accounts (over $1 million) were up 2 percent.
Richard Kerr, CEO of MarketScout, noted:
The commercial market is continuing its slow but steady upward trajectory in rates and premiums. Couple this with slight increases in exposures and the overall premium written on an expiring account is frequently up 8 to 9 percent.â€