Friday, May 10, 2013
Online insurance exchange MarketScout says the U.S. composite rate index for property, casualty and professional liability business rose 5 percent in April 2013, matching the increase from March 2013.
Commercial property and workersâ€™ compensation rates led the way with rate increases of 6 percent in April.
Jumbo accounts (over $1 million premium) once again came into favor as the rate increases moderated from 5 percent in March to 3 percent in April.
Richard Kerr, CEO of MarketScout, said:
The market is bumping along in a continued slow but steady path towards overall increases. For the rest of 2013, we expect some months with lower composite increases than prior months but the general direction of rates will be upward, unless new capacity enters the market.â€
Kerr added that recent movements by Berkshire Hathaway could affect the market if the plan is to enter the primary property and casualty market in a meaningful way.
Berkshire Hathaway recently hired four senior executives from AIG to help it expand its commercial insurance operations.
The Wall Street Journal has more on this story.