Trend Points to Possible Reductions in Insurance Rates by Year-End

In April, rate increases for commercial coverage moderated again, after a pickup in March, according to MarketScout.

In March, MarketScout’s Market Barometer showed that rate increases picked up steam ever so slightly to plus-3%, but in April, a multitude of factors caused rates to moderate again to plus-2%.

MarketScout CEO Richard Kerr says, “The April composite commercial rate remained in positive territory at plus-2%, but we may see rate reductions by year end if the current trend continues. If you are in the market on a daily basis, you can almost feel a change in the wind. No reasonable insurer wants rate reductions. However, everyone seems to feel they are coming.”

About the Author

Phil Gusman

Phil Gusman

Phil Gusman is a freelance journalist. Previously, he was managing editor of National Underwriter. Prior to joining National Underwriter in 2008, he was editor of Insurance Advocate. He has also served as associate editor of Crackdown!, an insurance-fraud publication, and as assistant editor of Empire State Report, which covers New York State politics. He graduated in 2002 from Plattsburgh State University in New York. Gusman may be reached at phil.gusman@gmail.com.

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