Outside of those CAT-prone areas, rate growth has been more moderate, Alera Group reports. Average increases were in the 5%-15% range, but in some cases reached as high as 25%. (Credit: nespix/Adobe Stock) Outside of those CAT-prone areas, rate growth has been more moderate, Alera Group reports. Average increases were in the 5%-15% range, but in some cases reached as high as 25%. (Credit: nespix/Adobe Stock)

Commercial property rates for high-risk accounts have seen insurance rates increase 25%-150%, according to analysis from Alera Group, which noted some experts are projecting current market conditions to persist through mid-year renewals, while S&P Global Ratings suggested the hard market will continue throughout 2023.

According to the company, high-risk accounts include those in catastrophe-prone areas, buildings with frame constructions and those with poor loss histories. In addition to California and states in the Southeast, CAT-prone areas are expanding to encompass more states in the West and East Coast.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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