Tuesday, April 9, 2013
Large U.S. commercial insurance buyers are being hit with rate increases and no longer assured of a more competitive price, according to the latest analysis from online insurance exchange MarketScout.
Richard Kerr, CEO of MarketScout noted that while historically brand name or large accounts have benefited from more aggressive pricing, in March 2013 underwriters more frequently charged an appropriate premium.
Our most recent data showed a significant reversal in pricing strategy for both large ($250,001 to $1 million premium) and jumbo (over $1 million premium) accounts. In February, rate increases for large accounts measured plus 3 percent and for jumbo accounts plus 2 percent. These increases adjusted to plus 5 percent for both in March.â€
Kerr added that large account pricing is the subject of considerable chatter among underwriters so MarketScout will be monitoring the situation very carefully.
TheÂ survey foundÂ that the commercial insurance rate index for the United States rose 5 percent in March 2013.
Workersâ€™ compensation, professional and small commercial all received more aggressive month-over-month price increases, MarketScout said.
By industry class, manufacturing continues to post the largest rate increases as compared to prior year results, followed by contracting, service, habitational, and transportation.
Insurance JournalÂ has more on this story.
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