Softening commercial market moderates as insurers stop cutting prices: Report | Insurance Business America
According to the company survey, the composite rate for commercial insurance placed in the US slowed to -1% from -2% in May. Business owners policies, umbrella and professional liability all moderated by 1% in June as compared to the prior month. EPLI rates, meanwhile, were up 1% while commercial auto rates moved from flat to +2%.
By industry class, all apart from habitational and transportation moderated by 1%. Habitational rates were unchanged at -2%, while rates for transportation accounts moved significantly from -2% to +1%.
Account sizes also remained virtually unchanged. Medium ($25,001 to $250,000) and large ($250,001 to $1,000,000) accounts moderated to -1% and 2% respectively.
“Insurers are getting tired of cutting rates,” Richard Kerr, chief executive of MarketScout concluded.
“There are still pockets of very competitive business; however, it is beginning to look like insurers are willing to maintain the rate reductions of the past few years and not cut rates even further.”
A summary of the June 2016 rates by coverage, industry class and account size include:
| By Coverage Class | |
| Commercial Property | Down 2% |
| Business Interruption | Down 1% |
| BOP | Down 1% |
| Inland Marine | Down 1% |
| General Liability | Flat |
| Umbrella/Excess | Down 1% |
| Commercial Auto | Up 2% |
| Workers’ Compensation | Down 1% |
| Professional Liability | Down 2% |
| D&O Liability | Down 1% |
| EPLI | Up 1% |
| Fiduciary | Down 1% |
| Crime | Up 1% |
| Surety | Flat |
| By Account Size | |||
| Small Accounts | Down 1% | ||
| Up to $25,000 | |||
| Medium Accounts | Down 1% | ||
| $25,001 – $250,000 | |||
| Large Accounts | Down 2% | ||
| $250,001 – $1 million | |||
| Jumbo Accounts | Down 3% | ||
| Over $1 million | |||
| By Industry Class | |||
| Manufacturing | Down 2% | ||
| Contracting | Down 1% | ||
| Service | Down 1% | ||
| Habitational | Down 2% | ||
| Public Entity | Down 1% | ||
| Transportation | Up 1% | ||
| Energy | Down 1% | ||
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