Softening commercial market moderates as insurers stop cutting prices: Report

Softening commercial market moderates as insurers stop cutting prices: Report | Insurance Business

Softening commercial market moderates as insurers stop cutting prices: Report
The softening commercial insurance market has begun to moderate after months of declining rates, a new report from MarketScout suggests.

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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