MarketScout — Insurance Rates in 2022’s Quarter 3

MarketScout said — once again — composite rates for commercial and personal lines insurance rose in the third quarter. Company spokesman, Richard Kerr said commercial rates jumped 5.8% and property rates rose even more at 6.67%.

Personal lines rose 4.58% over the third quarter of 2021. 

“We are seeing softening in the D&O/professional sector as additional markets expand available capacity,” Kerr said. “Cyber rates are still increasing significantly despite additional security.”

Here is how the rates rose by coverage class:

• *Commercial property: +7.67%
• *Business interruption: +6.3%
• *BOP: +5%
• *Inland marine: +4%
• *General liability: + 6%
• *Umbrella/excess: +7%
• *Commercial auto: +7.67%
• *Workers’ compensation: +0.3%
• *Professional liability: +5.7%
• *D&O liability: +7%
• *EPLI: +4.3%
• *Fiduciary: +1%
• *Crime: +1%
• *Surety: +1%

   

  MarketScout noted the rate change by industry class

   

• *Manufacturing: +5%
• *Contracting: +5.3%
• *Service: +5.67%
• *Habitational: +6%
• *Public entity: +4%
• *Transportation: +8%
• *Energy: +5%

   

  Next, Kerr moved onto personal lines. It saw increases as well.

   

  “High-value homes are experiencing more aggressive rate increases,” Kerr said. “This is largely because, on a composite national basis, more high-value homes are located in catastrophe-prone areas of the US, which naturally are assessed higher rates.”

   

  Kerr also pointed out that Hurricane Ian is going to impact personal lines rate increases as it will those of commercial lines.

   

  “Hurricane Ian is going to be a huge loss for insurers covering properties in Florida,” he said. “Excluding coverage for flood and storm surge, estimates are from $25 to $45 billion. Including flood claims, the total will most likely surpass $100 billion. Rates will be up dramatically in Florida for the foreseeable future.”

   

  Personal lines rate changes

   

• *Homeowners (under $1 million value): +4%
• *Homeowners (over $1 million value): +6%
• *Automobile: +4.3%
• *Personal articles: +4%

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

Source link: Insurance Journal — https://bit.ly/3Tcw4Ac