Rates in both commercial and personal lines insurance continuedto increase through November, according to the electronic exchangeMarketScout.

Commercial-lines accounts increased an average of 5 percent inNovember compared to the same period last year and personal linesincreased by 4 percent, the Dallas-based company says.

In October, commercial line accounts were up 4 percent comparedto the same period last year and personal lines were up 3percent.

By coverage class for commercial lines, commercial property,general liability, umbrella—excess, commercial auto and workers'compensation increased the most at 5 percent. Surety was up theleast at 1 percent. No lines of business showing decrease.

Turning to account size, small, medium and large accounts wereall up by 5 percent, while jumbo accounts (over $1 million inpremium) were up 2 percent.

By industry class, manufacturing and transportation were up by 6percent. Contracting, service, habitational and energy were up by 5percent. Public entity was up by 4 percent.

“The manufacturing rate increase was surprising,” says RichardKerr, CEO of MarketScout in a statement. “Normally, manufacturingis a very stable industry class absent quick pricing changes. Goingfrom plus 4 percent [in October] to plus 6 percent was unusual.

“As for transportation, the trucking segment of this industryclass is what is really driving the rate increases for the class atplus 6 percent. The losses suffered by the trucking market havebeen considerable over the last several years. We expect furtherrate increases for trucking exposures.”

Turning to personal lines, homeowners coverage under $1 millionin value was up 4 percent. Coverage for values over $1 million wasup 5 percent. Automobile and personal articles were up 3percent.

“Homeowners placements for homes over $1 million, the'high-net-worth' market, made a dramatic move in November,” saysKerr. “Rates moved up from plus 2 percent in October to plus 5percent in November. That is the largest month on month rateincrease we have seen in the eleven years we have been trackingrates in the U.S. It appears insurers of high value homes areadjusting rates upward to account for increased exposure to weatherrelated events. And some of the accounts are now being forced intothe non-admitted market where rates are higher and coverages arefrequently restricted.”

In an analyst's note, Meyer Shields, an analyst with StifelNicolaus, says that while rate increases remained steady, theyshould accelerate following Superstorm Sandy.

“We see insurers' deteriorating calendar-year results as theprimary catalyst for rate increases, and we expect these increasesto accelerate as favorable reserve development subsides, netinvestment income declines and accident-year results worsen,”Shields writes.