Commercial P&C rates increased 5 percent year-over-year in May for the third consecutive month, with property, general liability and workers' compensation showing the steepest hikes, according to MarketScout.
Dallas-based MarketScout says that directors and officers, general liability and EPLI policies were more expensive compared to April, while business owners policies, crime and fiduciary were less expensive.
Year-over-year, all lines showed increases. Commercial property, GL and workers' comp. policies were up by 6 percent in May 2013 compared to May 2012; umbrella/excess and commercial auto were up by 5 percent; D&O, BOP and EPLI were up by 4 percent; business interruption, inland marine and professional liability were up by 3 percent and fiduciary, crime and surety were up by 2 percent.
All industry classes also showed year-over-year increases, with manufacturing and transportation leading the way at 6 percent. But compared to April, MarketScout says manufacturing and public entities measured small premium decreases. Transportation accounts saw increases compared to April.
Small accounts (premium up to $25,000) and medium accounts ($25,001-$250,000) were up 5 percent in May compared to the same month a year ago. Large accounts ($250,001-$1 million) were up by 4 percent while jumbo accounts (over $1 million) were up by 3 percent.
Richard Kerr, CEO of MarketScout, says in a statement, "The commercial P&C market in the U.S. is continuing its steady trend of rate increases. There is ample capacity but underwriters continue to increase rates as appropriate."
Personal Lines
Personal lines rate increases year-over-year accelerated to 4 percent in May compared to 3 percent in April, with both homeowners and auto policyholders paying more, MarketScout says.
Both major personal-lines segments were up by 4 percent in May compared to up by 3 percent in April. Personal articles held steady at up by 3 percent.
Kerr says, "Regardless of the value of your home, most insureds had premium increases for renewals in May. Perhaps the numerous tornadoes or the pending hurricane season had an impact on pricing. We feel the increases are driven more by underwriters' sentiment than actuarial projections."
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