U.S. Commercial Lines Rates Up 4% in February: MarketScout

Commercial lines property/casualty insurance rates rose 4 percent on average in February 2013 compared February 2012, a recent survey revealed.

The U.S. commercial insurance rate index, published by MarketScout, shows transportation and energy rates have lead rate increases over the last year, however, for February transportation was up 4 percent and energy was up 3 percent .

“The only industry with a lesser rate increase was public entities,” said Richard Kerr, CEO of MarketScout. “Manufacturing, service and habitational companies lead the February industry rate increases at plus 6 percent.”

By account size, rates continue to be more competitive the larger the account. Small accounts were up 6 percent and jumbo accounts were up 2 percent.

By coverage classification, property insurance led the pack with a rate increase of plus 6 percent. General liability rates were considerably more competitive with rates up 4 percent as opposed to up 6 percent the month before.

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 survey findings is listed below.