Commercial-lines rates were up 3% in March, a slight increase from the 2% increase in February, as insurers made adjustments to meet profit targets, according to MarketScout.
The 3% figure matches the increase seen in January.
Richard Kerr, MarketScout CEO, says in a statement, “Insurers target a specific return-on-equity. Despite improving margins, insurers are still not meeting their profit targets, thus the continued marginal increases.”
Commercial auto, workers’ comp and BOP led the way with 4% increases in March. Both commercial auto and BOP were flat compared to the increases in February, while workers’ comp was up from a 3% increase in the prior month.
Inland marine, fiduciary, crime and surety rates increased the least at 1%. No line showed decrease for the month.
Small, medium and large accounts were all up by 3% in March, while jumbo accounts increased by 1%.
By industry class, contracting led the way for increases at +4% in March. Manufacturing, service and habitational were all up by 3%, while public entity was up by 2%.
Personal-lines rates were up by 3% in March as well, up from 2% in February. Kerr says, “When measuring premiums from March 2012 to March 2014, rates were up 9% in the aggregate. So, a homeowner paying $10,000 before renewing in March 2012 would be paying $10,926 after renewing their policy in March 2014.”
He notes that increases are moderating, and that he expects that trend to continue “unless insurers are hit with large catastrophic weather events later in the year.”
Homeowners rates—for homes valued both over and under $1 million—and auto rates were up by 3% while personal articles rates were up by 2%.