Property and Casualty News
It appears US insurers are tuning up their pricing as the market officially becomes soft again
in September with a composite rate of minus 1 percent for all US businesses. Richard Kerr, CEO of
MarketScout outlined what could be expected for the balance of 2015. “We expect pricing on most
lines to be adjusted downward with a few exceptions such as commercial automobile/transportation
risks and accounts with poor loss experience or other underwriting concerns.”
By coverage classification, the only change from August 2015 to September 2015 was for
property exposures, which were adjusted from plus 1 percent to minus 1 percent, a two-percentage
point change. All other lines of coverages remained flat except for auto, which remained at, plus 2
percent.
By account size, small (up to $25,000) to medium ($25,001 – $250,000) accounts held steady at
flat, while large accounts, ($250,001 – $1 million) were minus 1 percent in September 2015 versus flat
in August 2015. Jumbo accounts (over $1 million) adjusted down even further at minus 4 percent in
September 2015 versus minus 3 percent in August 2015.
Rates for all industry groups, except manufacturing and transportation, were down 1 percent
in September 2015. Manufacturing was flat and transportation was plus 2 percent.
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.
