Commercial-insurance rates were up by 4 percent in February compared to the same month a year ago, but different industry classes led the charge on increases compared to months prior, according to MarketScout.
Richard Kerr, CEO of MarketScout, says, “Over the last year, transportation and energy have lead rate increases most of the time. 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. Manufacturing, service and habitational companies lead the February industry rate increases at plus 6 percent.”
By coverage class, commercial-property rates were up by 6 percent for the month. Umbrella/excess and commercial auto followed with 5 percent increases for February compared to February 2012, while business-owners policies, general liability, workers’ comp, professional liability and directors and officers were all up 4 percent. Surety showed the most modest increase, up by just 1 percent compared to February 2012.
As seen in previous months, the larger the account, the more competitive the pricing. Rates for jumbo accounts, defined as premium over $1 million, were up by 2 percent in February. Large accounts ($250,001 to $1 million in premium) were up by 3 percents, Medium accounts ($25,001 to $250,000) were up by 5 percent and small accounts (up to $25,000) were up by 6 percent.