from insurancenewsnet.com
The composite rate for property and casualty insurance in the United States was up 3 percent in May
as compared to up 2 percent in April. Richard Kerr, CEO of MarketScout noted, “Frankly, this is a
somewhat of a surprise. Market sentiment supports rate moderation. However, as we all know, trends
bump along before establishing a true direction. Over time, a trend will be established.”
By coverage class, property, business owners policies (BOP) and general liability were all up from
plus 2 to plus 3 percent. EPLI was down from plus 3 to plus 2 percent.
Medium accounts ($25,001 to $250,000 premium) were up from plus 2 to plus 3 percent. These
medium sized accounts have a significant impact on the ultimate composite results because of their
high percentage of the total premium volume. Large accounts ($250, 0001 to $1,000,000 premium)
were up from plus 1 to plus 2 percent.
Manufacturing and energy industries were assessed an average rate increase of plus 3 percent as
compared to plus 2 percent in April. Service and habitation industries moderated from plus 3 to 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.
A summary of the May 2014 rates by coverage, industry class and account size is set forth below.
By Coverage Class
Commercial Property
Up 3%
Business Interruption
Up 1%
BOP
Up 3%
Inland Marine
Up 1%
General Liability
Up 3%
Umbrella/Excess
Up 2%
Commercial Auto
Up 3%
Workers’ Compensation
Up 3%
Professional Liability
Up 2%
D&O Liability
Up 2%
EPLI
Up 2%
Fiduciary
Up 1%
Crime
Up 1%
Surety
Up 1%
By Account Size
Small Accounts
Up 3%
Up to $25,000
Medium Accounts
Up 3%
$25,001 – $250,000
Large Accounts
Up 2%
$250,001 – $1 million
Jumbo Accounts
Up 1%
Over $1 million
By Industry Class
Manufacturing
Up 3%
Contracting
Up 3%
Service
Up 2%
Habitational
Up 2%
Public Entity
Up 1%
Transportation
Up 4%
