Filed Under:Risk, Public Sector Risk Management

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.”

Top Story

Ferguson protests spread nationwide

Ferguson, Mo. isn't the only place where people are protesting the grand jury decision not to indict police officer Darren Wilson in the shooting death of Michael Brown.

Top Story

Ferguson burning: 9 scenes of property damage in the wake of the riots

A grand jury in Ferguson, Missouri on Monday declined to indict a local police officer in the August 2014 shooting death of 18-year-old Michael Brown, setting off a night of violent riots in the suburban St. Louis community. Here's the aftermath.

More Resources

Comments

eNewsletter Sign Up

Risk Management Report eNewsletter

Identify problems involving emerging risks, reinsurance, and business interruption with help from Risk Management Report - FREE. Sign Up Now!

Mobile Phone
         

Advertisement. Closing in 15 seconds.