Rates in both commercial- and personal-lines insurance continued to increase through November, according to electronic exchange MarketScout. Rates for commercial-lines accounts increased an average of 5 percent in November compared to the same period last year, and personal lines increased 4 percent, the Dallas-based company says. (In October, commercial-lines accounts were up 4 percent compared to the same period last year, and personal lines were up 3 percent.)
By coverage class for commercial lines, Commercial Property, General Liability, Umbrella/Excess, Commercial Auto and Workers' Compensation increased the most at 5 percent each. Surety was up the least at 1 percent. No lines showed a rate decrease.
In terms of account size, small, medium and large accounts were all up by 5 percent, while jumbo accounts (those with more than $1 million in premium) were up 2 percent.
By industry class, manufacturing and transportation were up by 6 percent. Contracting, service, habitational and energy were up by 5 percent. Public entity was up by 4 percent.
"The manufacturing rate increase was surprising," MarketScout CEO Richard Kerr says in a statement. "Normally, manufacturing is a very stable industry class, absent quick pricing changes. Going from plus 4 percent [in October] to plus 6 percent was unusual.
"As for transportation, the trucking segment of this industry class is what is really driving the rate increases for the class at plus 6 percent," Kerr adds. "The losses suffered by the trucking market have been considerable over the last several years. We expect further rate increases for trucking exposures."
In personal lines, Homeowners' coverage under $1 million in value was up 4 percent, while coverage for values over $1 million was up 5 percent. Automobile and Personal Articles were up 3 percent.
"Homeowners' placements for homes over $1 million, the High-Net-Worth market, made a dramatic move in November," says Kerr. "Rates moved up from plus 2 percent in October to plus 5 percent in November. That is the largest month-on-month rate increase we have seen in the 11 years we have been tracking rates in the U.S. It appears insurers of high-value homes are adjusting rates upward to account for increased exposure to weather-related events. And some of the accounts are now being forced into the nonadmitted market, where rates are higher and coverages are frequently restricted."
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