Commercial Rates Keep going Up and Up and Up

MarketScout’s Market Barometer found commercial P&C rates jumped an average of 5.6% in the 4th quarter of 2023. Richard Kerr is MarketScout’s CEO. He said that push drove the final average rate increase for all of 2023 to 4.56%.

“Calendar year 2023 settled down a bit as compared to the last few years,” Kerr said. “Property insurers are still cautious, but they are optimistic 2024 could yield good returns, especially with the rate increases of the last several years. Throughout 2023, liability insurers assessed sensible rate increases.”

Kerr said property and auto rates rose the most in 2023. Property rates rose an average of 9.33% and auto rates ended the year at an average of 7.33%.

In the fourth quarter, personal lines rates jumped 4.75% and averaged a rise of 4.61% for all of 2023.

“We continue to see the largest composite rate increases in homes over $1,000,000 in Coverage A value, most likely because this includes all of the large homes in catastrophe-exposed locations,” Kerr noted. “While the composite rate for large homes was 5.9% for 2023, some homeowners in tough areas or with prior losses are experiencing rate increases as high as 50%.”

Here are the final numbers for 2023.

Premium trends by coverage class 4th quarter 2023

Property — 8.3%

Business Interruption — 6%

BOP — 5%

Inland marine — 4.3%

Umbrella/Excess — 6.7%

Auto — 7%

PL — 4.7%

D&O — 2.7%

EPU — 1.3%

Fiduciary — 1%

Crime — 1.3%

Surety — 0%

Premium trends by industry class 4th quarter 2023

Manufacturing — 3%

Contracting — 5.3%

Service — 3.3%

Habitational — 6.3%

Public entity — 2.7%

Transportation — 7.7%

Energy — 2.7%

Premium trends personal lines 4th quarter 2023

Homeowners under $1 million — 4.3%

Homeowners over $1 million — 6.7%

Auto — 5%

Personal articles — 3%

Source link: Insurance Journal — https://bit.ly/423RFjG

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

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