MarketScout says the composite rate for commercial insurance placed in the U.S. in May was up 4 percent compared to the same month a year ago.
In his comments on the month’s rate activity, MarketScout CEO Richard Kerr predicts additional increases in pricing for jumbo accounts (more than $1 million) as insurers self-cure themselves from what he calls “Show-Pony Syndrome.”
“It’s not unusual for underwriters to aggressively price jumbo accounts because of the cachet they bring,” says Kerr. “Fortune 100 ‘Show Pony’ accounts bring bragging rights, but sometimes rates do not justify the exposure.”
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