MarketScout: Average P/C Rate Increase 5%

The composite rate for U.S. commercial lines increased by 5 percent in November, according to the latest analysis from online insurance exchange MarketScout.

Property, excess liability, general liability and workers’ compensation rates increased the most at plus 5 percent. Surety had the smallest increase at plus 1 percent.

By industry class, manufacturing had the most significant month on month rate increase at plus 6 percent, compared to plus 4 percent the prior month. Transportation accounts were also up 6 percent.

Richard Kerr, CEO of MarketScout, said the manufacturing increase was surprising:

Normally, manufacturing is a very stable industry class absent quick pricing changes. Going from plus 4 percent to plus 6 percent was unusual.

As for transportation, the trucking segment of this industry class is what is really driving the rate increases for the class at plus 6 percent. The losses suffered by the trucking market have been considerable over the last several years. We expect further rate increases for trucking exposures.†

Check out I.I.I. information on the industry’s financial results and market conditions.

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