2012 Opens with Positive Composite Rate Increase

NU Online News Service, Feb. 6, 11:22 a.m. EST

The property and casualty industry’s positive rate momentum continued into the New Year as rates crept up another 1 percent in January, according to the online insurance exchange MarketScout.

“The 1 percent composite increase in January matched the increase for December 2011,” says Richard Kerr, chief executive officer of Dallas-based MarketScout. “Workers’ compensation and catastrophe-exposed property continued to exhibit the largest increases with upward adjustments of plus-2 percent.”

By coverage class, all lines were up or flat, similar to December.

Business interruption, which was up 1 percent in December, was up 2 percent last month. Umbrellas/excess and commercial auto were both flat in December and were up 1 percent in January.

Workers’ comp still showed upward momentum in January, but not as much as in December. Rates were up 2 percent in January for this line compared to 3 percent in the month prior.

By coverage class, there was little change. Small accounts, which were up 2 percent in December, rose 1 percent in January, while medium accounts, up 1 percent in December were up 2 percent in January.

Large accounts were unchanged up 1 percent, while jumbo accounts remained flat on a month to month basis.

The report follows the Council of Insurance Agents & Brokers’ fourth quarter survey of its insurance broker members that found average premium rates increased close to 3 percent during the last three months of 2011.

Responding to the MarketScout survey, Meyer Shields, a financial analyst with Stifel Nicolaus says in an analyst’s note, “We see insurers’ deteriorating calendar-year results as the primary catalyst for rate increases, and we expect these increases to accelerate as favorable reserve development subsides.”

Comments

Resource Center

View All »

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...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

Extending Contact Center Capabilities Across the Insurance Enterprise

Today advancements in technology are making a big impact on business and society. To yield...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.