Soft market conditions are continuing for the commercial property/casualty insurance industry, according to a recent report from MarketScout.
The majority of commercial accounts secured renewal terms in May as expiring, suggesting premiums are steady unless the exposure base has changed. This “holding pattern” remained true for nearly all industries, excepting transportation, which saw an average 2% increase in auto premiums.
“It seems both insureds and insurers are content to move forward with little or no changes,” commented MarketScout CEO Richard Kerr.
Rates on business owners policies increased to plus 1%, up from flat, in May while employment practices liability was down from plus 1% to flat. Business interruption, inland marine, general liability, umbrella/excess, workers’ compensation, professional liability, D&O liability and crime policies also remained flat.
Similarly, the manufacturing, service, public entity and energy industry classes all showed little to no fluctuation last month. Contracting, habitational and transportation all increased by plus 1%.
By account size, rates were similar to April’s pricing averages. Accounts with more than $1 million in premium fell to minus 2%, while small (up to $25,000 premium) and medium ($25,001 to $250,000 premium) were both up 1%.
MarketScout’s report is based on pricing surveys conducted by the National Alliance for Insurance Education and Research, and are analyzed by MarketScout staff. The surveys corroborate MarketScout findings and are mathematically driven by new and renewal placements across the United States.