Commercial-lines rates continued to climb in September, risingby 5 percent compared to the same month a year ago, according toMarketScout's latest analysis.

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In last month's MarketScout report, the Dallas-based electronicinsurance exchange said rates had climbed 5 percent in August 2012 compared to August 2011.

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For September, MarketScout says rates for smaller- andmedium-size accounts (defined as up to $250,000 in premium) were up6 percent, while large accounts (between $250,000 and $1 million)were up by 4 percent. Rates for jumbo accounts (over $1 million inpremium) rose by 3 percent.

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By coverage class, commercial property was the only line to seea lower rate of increase compared to last month's MarketScoutreport. In the current report, commercial property rates were up by6 percent in September compared to September 2011. Last month'sreport showed rates in this line up 7 percent in August compared toAugust 2011.

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Four lines of business showed rates increase by one point inSeptember compared to increases reported in August:

  • BOP, up 5 percent in August, climbed by 6 percent lastmonth.
  • Umbrella and excess rose 4 percent in September, compared to up3 percent in August.
  • Commercial auto rose 5 percent in September, compared to up 4percent in August.
  • Fiduciary was up 2 percent in September, compared to up 1percent in August.

The MarketScout barometer is another in a steady line of reportsindicating a gradual rise in rates. Last week, insurance brokerMarsh released its “Global Insurance Market Quarterly Briefing,” which says thecost of insurance for major lines increased by 0.9 percent duringthe third quarter of this year. The report examined 20 marketsglobally over a 12-month rolling period. During the quarter,renewal rates rose 1.4 percent, unchanged from the second quarterof this year.

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Turning to personal lines, MarketScout says rates were up by 3percent in September compared to the same month a year ago. RichardKerr, MarketScout's chief executive officer says, “High-net-worthhomeowners rates were a bit more competitive in September, with arate increase averaging plus-2 percent as compared to plus-3percent the prior month.”

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Rates for homeowners insured for under $1 million in value sawtheir rates rise by an average of 3 percent, unchanged fromAugust.

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Automobile rates stood at up 3 percent compared to up 2 percentin August.

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Personal articles remained unchanged on a month-to-month basisup 3 percent.

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