Online insurance exchange MarketScout just reported that the composite rate for U.S. commercial lines increased by 4 percent in October, a moderation from the 5 percent increase in September 2012.
Richard Kerr, CEO of MarketScout put the results in perspective:
While the composite rate may have moderated in October, we believe Superstorm Sandy will cause a month on month composite rate increase in November. It will take months before we know the magnitude of insured claims, but as time passes, the projection for insured losses continues to increase.Ã¢â‚¬
Property, business owners (BOP) and general liability all saw an easing in rates from plus 6 percent in September to plus 5 percent in October.
MarketScout noted that these three coverages represent a large volume of business, thus the drop in the overall composite rate from plus 5 percent to plus 4 percent.
By account size, small sized accounts (premiums up to $25,000) increased 5 percent, while medium and large accounts ($25,001 to $1 million) were up 4 percent and jumbo accounts (over $1 million) were up 3 percent.
By industry classification, service, habitational and contracting risks were up the most with an increase of 5 percent.
Further information from the I.I.I. on industry results and market conditions is available here.