Workers' compensation and commercial auto risks saw the steepestrate increases in January at +4% compared to the same month in2013—but the commercial-lines market overall continued itsmoderating trend, according to MarketScout.

MarketScout officially listed January's composite rate at +3%,the same as December—but CEO Richard Kerr notes, “If we were topost rate changes by fractional increments, you would see theactual increase at 2.55%, so the moderation trend continues.”

For January, Kerr says, rates for five coverage classes declined1% as compared to one year ago. No coverage classifications sawrate increases. By account size, half the accounts measured enjoyedpremium reductions of 1%.

Additional capacity, he adds, insurance-linked securities and amore stable economic environment (despite recent stock-marketadjustments) are partly responsible for the moderating rateenvironment.

Both workers' comp and commercial auto saw 4% increases.Business-owner policy, general liability and umbrella/excess rateswere up 3%. Commercial property, business interruption,professional liability and D&O rates were up 2%. Inland marine,EPLI, fiduciary, crime and surety risks all increased by 1%.

By industry, risks in manufacturing, contracting, service andtransportation all saw 4% rate increases. Habitational risks wereup 3%, public entity and energy risks were up 2%. Personal linesrates, meanwhile, also moderated in January, up by 2%year-over-year compared to 3% in December. “2013 was a good yearfor personal lines insurers,” Kerr adds. “We expect continuedaggressive pricing, but that will be geographically modified asappropriate.”