Commercial P&C rates increased 5 percentyear-over-year in May for the third consecutive month, withproperty, general liability and workers' compensation showing thesteepest hikes, according to MarketScout.

Dallas-based MarketScout says that directors and officers,general liability and EPLI policies were more expensive compared toApril, while business owners policies, crime and fiduciary wereless expensive.

Year-over-year, all lines showed increases. Commercial property,GL and workers' comp. policies were up by 6 percent in May 2013compared to May 2012; umbrella/excess and commercial auto were upby 5 percent; D&O, BOP and EPLI were up by 4 percent; businessinterruption, inland marine and professional liability were up by 3percent and fiduciary, crime and surety were up by 2 percent.

All industry classes also showed year-over-year increases, withmanufacturing and transportation leading the way at 6 percent. Butcompared to April, MarketScout says manufacturing and publicentities measured small premium decreases. Transportation accountssaw increases compared to April.

Small accounts (premium up to $25,000) and medium accounts($25,001-$250,000) were up 5 percent in May compared to the samemonth a year ago. Large accounts ($250,001-$1 million) were up by 4percent while jumbo accounts (over $1 million) were up by 3percent.

Richard Kerr, CEO of MarketScout, says in a statement, “Thecommercial P&C market in the U.S. is continuing its steadytrend of rate increases. There is ample capacity but underwriterscontinue to increase rates as appropriate.”

Personal Lines

Personal lines rate increases year-over-year accelerated to 4percent in May compared to 3 percent in April, with both homeownersand auto policyholders paying more, MarketScout says.

Both major personal-lines segments were up by 4 percent in Maycompared to up by 3 percent in April. Personal articles held steadyat up by 3 percent.

Kerr says, “Regardless of the value of your home, most insuredshad premium increases for renewals in May. Perhaps the numeroustornadoes or the pending hurricane season had an impact on pricing.We feel the increases are driven more by underwriters' sentimentthan actuarial projections.”