Insurance Rates — Rising but Worries Exist

MarketScout’s first quarter of 2024 Market Barometer looks pretty much like the last 20 or so. The average raise in commercial rates is 3.9%. The company is now owned by Novatae Risk Group and its CEO Richard Kerr said the rate hikes come with lots of worries about risk via catastrophes and liability outcomes.

“January and February posted very modest rate increases; however, rates were trending upward more aggressively in March,” Kerr said. “Property insurers are nervous about the 2024 catastrophe season. Liability insurers are more calm but economic conditions and incurred, but not yet reported, claim estimates may impact rates later in 2024.”

Kerr also pointed out that the 3.9% is much less than the 5.6% in the fourth quarter of 2023.

Here is how things looked in the quarter:

  • Commercial property — rose 6.3%
  • Business interruption — up 5%
  • BOP — increased 3.7%
  • Inland marine — jumped 3.3%
  • General liability — rose 3.25%
  • Umbrella excess — up 6.3%
  • Commercial auto — increased 3.7%
  • Workers compensation — stayed even at 0%
  • D&O liability — jumped 2.7%
  • ELPI — rose 1%
  • Fiduciary — up 1%
  • Crime — increased 1.3%
  • Surety — rose 1%

The National Alliance for Insurance Education and Research took a look at personal lines. They, too, have seen steady increases. Personal lines average rose 4.75% from the fourth quarter of 2023 to the end of the first quarter of 2024.

  • Homes valued at under $1 million had an average increase of 4.7%
  • Homes valued over $1 million saw a rise of 5.3%
  • Auto rates averaged a 5.3% hike
  • Personal articles rose 3.7%

Source link: Insurance Business America — https://bit.ly/49veNJC

Source link: Business Insurance — https://bit.ly/4aIsiqo

Source link: Insurance Business America — https://bit.ly/4aO4stv

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