May Premiums Show Slight Moderation

NU Online News Service, May 7, 2:19 p.m. EDT

May property and casualty premium costs showed slight moderation in their downward trend compared to the previous two months of this year, according to MarketScout's monthly rate barometer.

The Dallas-based online insurance exchange released its monthly barometer on insurance premium rates, showing that p&c rates overall showed a decline of 3 percent, compared to drop of 4 percent on average for both March and April.

"General liability rates moderated in May," said Richard Kerr, founder and chief executive officer for MarketScout. "The trend of larger accounts getting deeper premium discounts continued. Small accounts realized a rate reduction of two percent, while jumbo accounts enjoyed reductions averaging five percent. Transportation, habitation and energy industries had the least premium reductions at minus-two percent."

By coverage class, of the 14 classes, only general liability and crime showed any shift in the average rate decline--both by one percentage point. General liability went from a drop of six percent in April to five percent last month. Crime, which came in down one percent in April, was flat in May.

By account size, segments changed by one percentage point on a month-to-month basis.

Small accounts (those up to $25,000 in premium), were down two percent. Medium accounts (between $25,001 and $250,000) saw rates fall three percent on average.

Large accounts saw rates drop four percent, while "jumbo" accounts (those generating more than $1 million in premiums) were down five percent.

In a note from Stifel Nicolaus reflecting on Market Scout's reports for the year, analysts said they are cautious about the performance of the commercial lines insurers--except for W.R. Berkley--but believed personal lines rates showed signs of better performance with improving underwriting results.

They also said that the reduction in soft market headwinds would be positive for insurance broker organic growth.

Comments

Resource Center

View All »

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Risk Management for Law Firms

This package of 3 concise risk management articles offers straightforward content and practical suggestions law...

Guide: Top 15 E&O Risks-And How To Avoid Them

Accidents happen. But when it's an errors and omissions oversight, that accident can open your...

We'll Show You How to Reach Your Sales Goals

Whether you work alone or have a team of agents working for you, we can...

Agent & Broker Insider eNewsletter

Proven success tips and essential information to help agents and brokers grow their practice – FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.