Strategic Resources for Your Insurance Agency

US Commercial Insurance Rates

SHARE

 

US Commercial Insurance Rates Up 5% in Fourth Quarter

Rates Continue to Increase at Close of 2019

 

Fourth quarter rates for commercial insurance placements across the United States increased 5 percent. The steady trend of upward rate movement reflects insurers plans to continue increasing prices across all lines of coverage with workers’ compensation being the only exception.

Richard Kerr, CEO of MarketScout noted, “Auto rate increases have been up all year long; however, D&O and professional rate increases have spiked significantly in the fourth quarter.”

According to Kerr, “Insurers are utilizing the many catastrophe modeling tools to carefully analyze their property exposures. We expect many of the major property catastrophe insurers to curtail their 2020 writings in California brush and East and Gulf Coast wind areas. Naturally, this will result in higher rates to insureds.”

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.

 

 

The following graphic reflects rate changes in US commercial insurance for the last 18 years.

 

 

Commercial lines rate changes throughout 2019

 

A summary of the fourth quarter 2019 rates by coverage, industry class and account size is set forth below. 

 

By Coverage Class    

Commercial Property - Up 5.25%

Business Interruption - Up 5%

BOP - Up 3.5%

Inland Marine - Up 4%

General Liability - Up 4.25%

Umbrella/Excess - Up 5.5%

Commercial Auto - Up 8%

Workers’ Compensation - Down 1%

Professional Liability - Up 6%

D&O Liability - Up 8.25%

EPLI - Up 4.25%

Fiduciary - Up 3.5%

Crime - Up 3.25%

Surety - Up 2%

 

  

 

By Account Size

 

Small Accounts           Up 5%

Up to $25,000

Medium Accounts       Up 4.5%

$25,001 – $250,000

Large Accounts          Up 5.5%

$250,001 – $1 million

Jumbo Accounts         Up 5.5%

Over $1 million

  

 

By Industry Class

 

Manufacturing - Up 3.5%         

Contracting - Up 5.25%       

Service - Up 5%

Habitational - Up 8.25%       

Public Entity - Up 4.25%       

Transportation - Up 9%

Energy - Up 3.25%

 

 

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at [email protected].

 

About MarketScout

MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business. The firm operates the MarketScout Exchange at marketscout.com as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. MarketScout has supported innovation and entrepreneurialism via the Entrepreneurial Insurance Alliance (EIA) since 2007. The EIA supports start up entrepreneurs and innovators via financial, advisory and distribution support. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arkansas, California, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at marketscout.com. California license #0D60423

Explore Agency Equity

Subscribe

Stay up to date with AgencyEquity

absolute absolute.gif absolute
absolute
absolute>
absolute
absolute