Commercial Prices & 2022’s 1st Quarter — Up

MarketScout regularly tracks insurance rates. Commercial rates — the company says — are continuing to rise. On average they rose 6% in the first quarter of 2022. The fourth quarter of last year saw an increase of 5.8%.

Rates in January and February were about the same as they were last year. MarketScout CEO Richard Kerr said March of this year saw rates climb higher and he says it “could be the beginning of stronger increases for the next several quarters.”

Some of the rate hikes — he says — were aggressive. An example is the 19.7% jump in cyber rates or the 9.7% hikes seen in umbrella and excess. D&O insurance also rose 8.7% in March.

Commercial property is up 7.6%, business interruption 6.3% and commercial auto bumped up 7.3%. Workers’ compensation and crime and surety all saw small increases of 1% and 1.3% respectively.

Jumbo accounts saw increases overall of 6.7%. Small accounts had average rate increases of 5.3% and medium-sized accounts saw hikes average 6.3%.

Here’s more:

Manufacturing — up 5.7%

Contracting — rose 6.0%

Service — rates rose 5.3%

Habitational — up 8.0%

Public entity — increased 5.0%

Transportation — jumped 10.3%

Energy — up 5.3%

Source link: Insurance Business America — https://bit.ly/3xmWg2N