Commercial insurance rates up in Q4 | Insurance Business
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%