US commercial insurance rates continued to slide in October, with the composite plus 1% according to MarketScout reports. That’s close to on par with September results, though two commercial lines—automobile and professional liability coverage—were up 1% from the previous month.
Property and workers’ compensation rates, however, both fell 1% in October.
And in total, the contracting, service and transportation industries all fell an additional 1% in October. Other industries tracked by the insurance analyst remained unchanged, but for the continually growing manufacturing and energy sectors. Both rose from plus 1% in September to plus 2%.
As for account size, small (up to $25,000) and medium ($25,001-$250,000) accounts led the way with 2% growth each.
Other findings from MarketScout include:
By Coverage Class |
Commercial Property |
Up 1% |
Business Interruption |
Up 1% |
BOP |
Up 2% |
Inland Marine |
Up 1% |
General Liability |
Up 2% |
Umbrella/Excess |
Up 2% |
Commercial Auto |
Up 3% |
Workers’ Compensation |
Up 1% |
Professional Liability |
Up 2% |
|
D&O Liability |
Up 2% |
EPLI |
Up 2% |
Fiduciary |
Up 1% |
Crime |
Up 1% |
Surety |
Up 1% |
By Industry Class |
Manufacturing |
Up 2% |
Contracting |
Up 3% |
Service |
Up 1% |
Habitational |
Up 1% |
Public Entity |
Up 1% |
Transportation |
Up 2% |
Energy |
Up 2% |
By Account Size |
Small Accounts |
Up 2% |
Up to $25,000 |
|
Medium Accounts |
Up 2% |
$25,001 – $250,000 |
|
Large Accounts |
Up 1% |
$250,001 – $1 million |
|
Jumbo Accounts |
Up 0% |
Over $1 million |
There’s also good news accompanying the report. MarketScout CEO Richard Kerr announced that while the country’s composite commercial rate “continues its slow slide,” there is reason to believe the worst may well be over.
“We are almost completely past hurricane season, so we expect continued pressure on property rates,” Kerr said. “Workers’ compensation rates are also down from last month; however, a few large insurers could be facing some challenges on their comp book. If so, this could moderate the slide in WC premiums.”