MarketScout: Commercial Insurance Rates Hold Steady

Online insurance exchange MarketScout reports that the composite rate for U.S. commercial insurance held steady at plus 4 percent in November, matching the rates for October 2013.

Richard Kerr, CEO of MarketScout noted:

The market is still on an upward trajectory but rate increases are slowing.†

Kerr went on to explain that the only rate increases by coverage classification were small commercial policies (BOP) and general liability coverages, which both increased from plus 3 percent to plus 4 percent.

However, the general liability increase was possibly an adjustment from the unusually large percentage rate reduction in October, Kerr said.

Jumbo accounts (those over $1 million premium) were up from plus 2 percent to plus 3 percent. The manufacturing segment saw its rates increase from plus 4 percent to plus 5 percent.

Rates moderated by 1 percent in November for umbrella liability, auto, and crime coverages, MarketScout added.

By account size, medium accounts ($25,001 to $250,000 premium) were down from plus 5 percent to plus 4 percent.

Transportation accounts paid an average plus 4 percent in November as compared to plus 5 percent in October.

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