Workers' compensation and commercial auto risks saw the steepestrate increases in January at +4% compared to the same month in2013, but the commercial-lines market overall continued itsmoderating trend, MarketScout says.

MarketScout officially listed January's composite rate at +3%,the same as December, but CEO Richard Kerr notes, If we were topost rate changes by fractional increments, you would see theactual increase at 2.55 percent, so the moderation trendcontinues.”

Recapping the previous year, MarketScout notes that 2013 beganwith a composite rate increase of +5 percent, moderated slightly inJuly, and ended up at +3 percent at year-end.

For January, Kerr says, “Rates for five coverage classesdeclined 1% as compared to one year ago. No coverageclassifications had a rate increase. By account size, half theaccounts measured enjoyed premium reductions of 1%. By industryclass, four out of seven were down 1%.”

He explains, “Additional capacity, insurance-linked securitiesand a more stable economic environment (despite recent stock-marketadjustments) are partly responsible for the moderating rateenvironment.”

Both workers' comp and commercial auto saw 4% rate increases.BOP, general liability and umbrella/excess rates were up 3%.Commercial property, business interruption, professional liabilityand D&O rates were up 2%. Inland marine, EPLI, fiduciary, crimeand surety risks all increased by 1%.

Small accounts saw the steepest rate increases at 4%, mediumaccounts were up 3%, large accounts up 2% and jumbo accounts up1%.

By industry, risks in manufacturing, contracting, service andtransportation all saw 4% rate increases. Habitational risks wereup 3%, public entity and energy risks were up 2%.

Personal lines

Personal lines rates also moderated in January, up by 2%year-over-year compared to 3% in December.

Kerr says, “2013 was a good year for personal lines insurers. Weexpect continued aggressive pricing, but that will begeographically modified as appropriate. Coastal homeowners continueto enjoy competitive rates because of the lack of windstormactivity in 2013, despite Superstorm Sandy.”

For January, he adds, “Homes under $1 million in value wereassessed a 2% increase, while high-value homes paid an additional4%. Both metrics were down 1 percentage point from December2013.”

Automobile and personal articles were both increased by 2%, aslight reduction for personal articles and the same rate forautomobile.