It's not a huge boost, but it's a start.
|Dallas-based insurance distribution and underwriting companyMarketScout recorded small rate increases in themajority of coverage and industry classifications. Notably, for thefirst time in 20 months, the composite rate index for commercial accounts in the U.S. measured a rateincrease of plus 1 percent.
|MarketScout CEO Richard Kerr summarized the plus 1 percentcomposite rate index as being driven by larger rate increases incommercial auto, transportation, professional and D&Orates.
|Rates for business interruption, inland marine, workers' compensation, crime,and surety coverages held steady in the first quarter. Rates forall other coverages either moderated or increased.
|By industry class, every industry experienced a move towardhigher rates in Q1. Transportation had the largest rate increase atplus 5 percent.
|The National Alliance forInsurance Education and Research conducted pricing surveys usedin MarketScout's analysis of market conditions, furthercorroborating MarketScout's actual findings.
|Personal line rates increased 2 percent
Additionally, MarketScout reported that personal lines ratesheld steady in Q1 at an average increase of 2 percent.
|MarketScout's findings on personal lines included the following:Homeowners valued under $1,000,000 were up 3 percent; homeownersvalued over $1,000,000 were up 2 percent; automobile was up 3percent; personal articles were up 1 percent.
|"Insurers have done a good job forecasting losses, so premiumsare relatively stable," said Kerr, who noted that homes under$1,000,000 saw rates increase 3 percent because they "produced aless attractive return on equity for insurers," while homes over$1,000,000 had rates increase by 2 percent due to their ties withhigh net worth clients "who tend to be a preferred class ofinsureds."
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