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 »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Unit used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

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.