September brought a slight rate increase for U.S. companies buying property/casualty insurance, according to online insurance exchange MarketScout.
MarketScout reported that the composite rate for commercial lines rose 5 percent in September 2013, up from plus 4 percent in August.
Commercial property and general liability coverages led the way with rate increases of 6 percent, followed by commercial auto and business owners policies (BOP) with increases of 5 percent.
Meanwhile Richard Kerr, CEO of MarketScout noted that several medium sized publicly traded insurance companies are encountering challenges in their ongoing business operations:
These companies may be sold, restructured, or placed into run off unless they structure some creative solutions to get them past their current financial crisis. Very capable, smart insurance executives lead each of these firms. It just goes to show how quickly things can go wrong if an insurer experiences adverse loss development. Rates will increase if a few more companies experience similar deterioration.Ã¢â‚¬
By account size, the larger accounts paid less premium than smaller accounts in September, according to MarketScout.
Small accounts (up to $25,000 premium) incurred average rate increases of 6 percent, medium accounts ($25,001 to $250,000) increases of 5 percent, while large accounts ($250,001 to $1 million) and jumbo accounts (over $1 million) saw increases of 3 percent and 2 percent respectively.
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