Commercial insurance rates up in Q4

Commercial insurance rates up in Q4 | Insurance Business

Commercial insurance rates up in Q4

Commercial insurance rates were up in the fourth quarter of 2018, according to a new report by insurance distribution and underwriting company MarketScout.

The US commercial insurance composite rate averaged an increase of 2% in the fourth quarter, matching the composite rate for the entire year, according to MarketScout. Transportation and commercial auto led rate increases in Q4, with hikes of 6% and 7%, respectively. Workers’ compensation, meanwhile, posted a rate decrease of 1.5%.

“Ample capacity remains in the commercial insurance market,” said Richard Kerr, CEO of MarketScout. “Rates for all coverage classifications other than workers’ compensation are increasing at a controlled, slow pace. Only transportation and commercial auto exposures are suffering large rate increases.”

Below is a summary of fourth-quarter rates by coverage, industry class and account size:

By coverage class:

  • Commercial property: +2.5%
  • Business interruption: +3%
  • BOP: +2%
  • Inland marine: +1%
  • General liability: +2%
  • Umbrella/excess: +2%
  • Commercial auto: +7%
  • Workers’ compensation: -1.5%
  • Professional liability: +1.5%
  • D&O liability: +1.5%
  • EPLI: +2%
  • Fiduciary: +1%
  • Crime: +1%
  • Surety: +1%

By account size:

  • Small (up to $25,000): +2.5%
  • Medium ($25,001-$250,000): +1.5%
  • Large ($250,001-$1 million): +2.5%
  • Jumbo (over $1 million): +2%

By industry class:

  • Manufacturing: +2%
  • Contracting: +2.5%
  • Service: +2.5%
  • Habitational: +3%
  • Public entity: +2.5%
  • Transportation: +6%
  • Energy: +1.5%