Commercial property-casualty insurance rates dropped again in July–by 7 percent–though a few lines showed upward pricing trends, according to a monthly report from an online insurance exchange.
Over the previous four months, the average composite rate for commercial property-casualty coverages tracked by Dallas-based MarketScout dropped 5 percent in April, 6 percent in May, 7 percent in June, and now 7 percent again in July.
While the majority of individual lines were down anywhere from 1-to-8 percent, rates for directors and officers liability and fiduciary liability were flat. Commercial property was up 2 percent, and business income and crime were up 1 percent, according to MarketScout.
By industry class, manufacturing, contracting and service sectors were down 5-to-8 percent, while habitation, public entity and transportation markets were up 1-to-5 percent. Energy showed the highest increase at 8 percent.
The company said its analysis, based upon pricing through its online transactions, is a composite index and individual risks vary based upon underwriting criteria, risk profile, industry group and geographic location.
Richard Kerr, chairman and chief executive officer of MarketScout, commenting on the results, said: "Underwriters are getting smarter because they have better information tools to analyze risks. As technology has evolved, insurance and reinsurance companies are utilizing improved techniques to more appropriately price each account."
He said technology is allowing insurers to create "micromarkets" where rates vary significantly based upon geographic location, profile and industry class.
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