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US P&C Composite Rate Increased 4.8% in Second Quarter 2020

Surplus Lines Accounts Up 9 Percent

The US composite commercial property and casualty rates increased slightly from up 4.5 percent in the first quarter 2020 to up 4.8 percent in the second quarter.

According to Richard Kerr, CEO at MarketScout, “Almost all US insurers are assessing rate increases; however, surplus lines insurers are more aggressive as rate increases for the second quarter were up 9 percent. Drilling down even further, cat-exposed surplus lines property accounts averaged rate increases of 12 percent.”

Directors and officers liability rates are moving aggressively upward. "D&O rates were up 9.3 percent in the second quarter. This is a very volatile market. Insureds with claims are seeing rate increases as high as 50 percent,” noted Kerr.

Business interruption rates were up from 4 percent in the first quarter to plus 6 percent in the second quarter, possibly because of the concerns surrounding COVID-19 claims.

By industry group, transportation accounts continue to suffer the largest rate increases at plus 8.3 percent in the second quarter.

The MarketScout Market Barometer tracks rate movement for all industries and coverage classes as well as by the size of the account (measured by premium size).

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.

A summary of the second quarter 2020 rates by coverage, industry class and account size is set forth below.

By Coverage Class
Commercial Property Up 5%
Business Interruption Up 6%
BOP Up 4.6%
Inland Marine Up 4.6%
General Liability Up 4.3%
Umbrella/Excess Up 4%
Commercial Auto Up 5.3%
Workers’ Compensation Flat 0%
Professional Liability Up 6.7%
D&O Liability Up 9.3%
EPLI Up 5%
Fiduciary Up 2.6%
Crime Up 4%
Surety Up 1.3%
By Account Size
Small Accounts Up 4%
Up to $25,000
Medium Accounts Up 4.6%
$25,001 – $250,000
Large Accounts Up 4.8%
$250,001 – $1 million
Jumbo Accounts Up 4.3%
Over $1 million
By Industry Class
Manufacturing Up 4%
Contracting Up 6.3%
Service Up 4.3%
Habitational Up 7%
Public Entity Up 4.7%
Transportation Up 8.3%
Energy Up 3%

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at

About MarketScout

MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. The firm is a Lloyd's Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. MarketScout has supported innovation and entrepreneurialism via the Entrepreneurial Insurance Alliance (EIA) since 2007. The EIA supports start up entrepreneurs and innovators via financial, advisory and distribution support. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arkansas, California, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at California license #0D60423