NU Online News Service, July 6, 10:06 a.m.EDT

Commercial and personal insurance lines pricing continued theirupward drive through the month of June as composite rates matchedthe previous month's increases, according to the latest MarketScoutbarometer.

The June commercial rate barometer says average commercialproperty and casualty rate increases rose by 4 percent, matchingMay's increase, while personal lines composite rose 2 percent,matching last month's increase.

“We did record rate moderation for workers' compensationaccounts from plus 5 percent in May to plus 4 percent inJune,” says Richard Kerr, chief executive officer of theDallas-based electronic insurance exchange in a statement. “Themarket for workers' compensation is 'bumpy' as insurers try tosettle in at appropriate pricing. Accounts with class codes relatedto high hazard exposures are being assessed considerable rateincreases of plus 7 percent to plus 15 percent. Traditional MainStreet workers' compensation accounts are renewing as expiring toplus 2 percent.”

MarketScout says contracting and habitational lines pricingincreased from plus 4 to plus 5 percent.

Service contractors insurance increased from plus 3 to plus 4percent while public entities actually decreased from plus 3 toplus 1 percent.

By account size, small and medium accounts were up 4 percent.Large Accounts, between $250,000 and $1 million in premium, were up3 percent. Jumbo accounts, over $1 million in premium, were up 1percent.

In an analyst's note, Meyer Shields with Stifel Nicolaus says ofthe report's indicators, “We see insurers' deterioratingcalendar-year results as the primary catalyst for rate increases,and we expect these increases to accelerate as favorable reservedevelopment subsides and accident-year results edge worse.”

On the personal lines side, Kerr notes, “Insurers continue toaggressively price homeowners exposures to non-cat areas. Thosehomes in [catastrophe] areas such as California, and in particularFlorida, and other hurricane exposed areas are being assessed rateincreases of 7 to 12 percent, which is slightly up from earlier inthe year. Normally, as we enter the wind season, coastal ratestrend upward.”

On a composite basis, MarketScout says homes valued at over $1million had rate increases of 1 percent. Homes under $1 million,auto and personal articles floaters had rate increases of 2percent.