Insurance Rates Continue to Rise

Average rate increases for commercial and personal insurance lines picked up steam in August, says MarketScout.

Average rate increases for commercial and personal insurance lines continued their upward push through August rising an additional point over the prior month, says MarketScout.

The Dallas-based electronic exchange’s property and casualty commercial insurance market barometer puts the composite rate for U.S.-based commercial risks up 5 percent for August. Rates stood up 4 percent for the months of May, June and July of this year.

Commercial property rates in the United States were up 7 percent in August—an acceleration from a 6 percent increase seen in July.

Workers’ compensation and general liability rates were up 6 percent in August. Rates for directors’ and officers’ liability increased a point to 4 percent from 3 percent in July. Employment practices liability insurance rates held steady up 3 percent.

Not all lines saw an uptick in rate increases in August.

Commercial auto rates dropped from up 5 percent in July to up 4 percent in August. Rates for umbrella/excess increased 3 percent in August compared to 4 percent in July.  

By account size, rates at small and medium accounts were up 5 percent, large accounts were up 4 percent, and jumbo accounts of over $1 million were up 3 percent, says MarketScout.

From an industry class perspective, rate increases in August were led by 6 percent hikes in manufacturing and contracting.

Looking to personal lines, rates in August this year compared to August last year were up 3 percent—an increase from up 2 percent in July.

Insurance on homes valued at above and below $1 million was up 3 percent in August. Auto insurance rates were up 2 percent for the month.

Originally published on PropertyCasualty360. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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