Aggressive pricing for large, name-brand accounts has waned asU.S. commercial rates jumped 5 percent in March compared to thesame month a year ago, says MarketScout.

“Other than the cachet or bragging rights, there are few soundunderwriting reasons for aggressively pricing large accounts,” saysRichard Kerr, CEO of the Dallas-based electronic insuranceexchange.

“Risk is risk, and exposure is exposure,” he adds. “In March,underwriters more frequently assessed an appropriate premium forlarge accounts.”

Typically, competition to get some of these prestigious,name-recognized—and high-premium-generating—accounts on the booksresulted in an advantage for the buyer. That may no longer be thecase.

Comparing March 2013 to the same month a year ago, MarketScout'smonthly Market Barometer indicates all sizes of commercial accountswere up 5 percent in March, except medium-size accounts of between$25,001 and $250,000 in premium, which were up 6 percent.

But the most movement in rate from a month ago was seenin large ($250,001 to $1 million premium) and jumbo (over $1million premiums) accounts.

In February rates for these accounts were up 3 percent and 2percent, respectively. Kerr says there is a “considerable amount ofchatter amongst underwriters regarding pricing in the area.”

By coverage class, rates for commercial-property, workers'compensation, commercial auto, umbrella/excess and business-ownerspolicies were up 5 percent for the month.

Manufacturing continues its recent trend of leading all industryclasses. Rates here were up 7 percent in March, followed byincreases of 5 percent for contracting, service, andhabitational.