It appears US insurers are tuning up their pricing as the market officially becomes soft again in September with a composite rate of minus 1 percent for all US businesses. Richard Kerr, CEO of MarketScout outlined what could be expected for the balance of 2015. “We expect pricing on most lines to be adjusted downward with a few exceptions such as commercial automobile/transportation risks and accounts with poor loss experience or other underwriting concerns.”
By coverage classification, the only change from August 2015 to September 2015 was for property exposures, which were adjusted from plus 1 percent to minus 1 percent, a two-percentage point change. All other lines of coverages remained flat except for auto, which remained at, plus 2 percent.
By account size, small (up to $25,000) to medium ($25,001 – $250,000) accounts held steady at flat, while large accounts, ($250,001 – $1 million) were minus 1 percent in September 2015 versus flat in August 2015. Jumbo accounts (over $1 million) adjusted down even further at minus 4 percent in September 2015 versus minus 3 percent in August 2015.
Rates for all industry groups, except manufacturing and transportation, were down 1 percent in September 2015. Manufacturing was flat and transportation was plus 2 percent.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.
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