Commercial insurance rates in the United States slipped to plus 2 percent in June 2014 from plus 3 percent in May, according to latest analysis from online insurance exchange MarketScout.
Richard Kerr, CEO of MarketScout, said:
The commercial market continues to adjust downward as a result of improved underwriting results and an abundance of capacity. In the aggregate, rates are still up slightly but the trend for rate moderation continues.”
By coverage class, umbrella, workers’ compensation, D&O, and EPLI all moderated from the prior month with each registering a plus 1 percent rate increase.
Workers’ compensation rates slipped the most from plus 3 percent in May to plus 1 percent in June.
By account size, small (up to $25,000) and medium accounts ($25,001 up to $250,000) remained at plus 3 percent. Large accounts ($250,001 to $1 million) slipped from plus 2 percent to plus 1 percent and jumbo accounts (over $1 million) were up 0 percent or flat.
Kerr noted that this is the first plus 0 percent measurement since the market turned towards rate increases in November 2011:
It’s not surprising the jumbo accounts have gone flat as the name brand account continues to allure underwriters despite the lower ROE. There is a pricing benefit to being a name brand, Fortune 1000 insurance buyer.”
By industry class, manufacturing, transportation and energy all adjusted their month-over-month rate increases downward by 1 percent.
Check out latest information from the I.I.I. on financial results and market conditions.