Fourth Quarter 2021 Personal Lines Rates Up 4.25%
January 5, 2022
Personal, commercial P&C insurance rates up in Q4 2021
January 8, 2022

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Property and Casualty Rates Up in Fourth Quarter 2021

Annual Composite Rate Increases Continue for Fifth Year in a Row

 

The fourth quarter 2021 composite rate was up 5.8 percent as compared to up 6.8 percent for the third quarter 2021. By line of coverage, the biggest rate increases in the fourth quarter were for umbrella, property and directors and officers liability. However, every line of coverage except BOP had the same or a lower increase in the fourth quarter as compared to the preceding third quarter. Rates moderated for all account sizes with medium sized accounts ($25,000 premium $250,000 premium) moderating the most at plus 5.3 percent in the fourth quarter as compared to plus 7.3 percent in the third quarter. All industry classifications were assessed lower rate increases in the fourth quarter with habitational rates moderating the most at an increase of 7 percent as compared to plus 9 percent in the third quarter 2021. Richard Kerr, CEO of MarketScout noted, “The fourth quarter 2021 reflects moderation in rate increases. However, when comparing rates for the entirety of 2021, rates did increase from plus 5.6 percent in 2020 to plus 6.6 percent in 2021.” 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.

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.

The following graphic reflects rate changes in US commercial insurance for the last 20 years.

A summary of the fourth quarter 2021 rates by coverage, industry class and account size is set forth below.

By Coverage Class
Commercial Property Up 8.3%
Business Interruption Up 6%
BOP Up 5.3%
Inland Marine Up 4.3%
General Liability Up 5.3%
Umbrella/Excess Up 11%
Commercial Auto Up 6.7%
Workers’ Compensation Up 0%
Professional Liability Up 6.3%
D&O Liability Up 10.3%
EPLI Up 8%
Fiduciary Up 1.7%
Crime Up 1.3%
Surety Up 1.3%
By Account Size
Small Accounts Up 5%
Up to $25,000
Medium Accounts Up 5.3%
$25,001 – $250,000
Large Accounts Up 6.7%
$250,001 – $1 million
Jumbo Accounts Up 6.7%
Over $1 million
By Industry Class
Manufacturing Up 6.3%
Contracting Up 6%
Service Up 5.7%
Habitational Up 7%
Public Entity Up 3.7%
Transportation Up 10.3%
Energy Up 5%

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@marketscout.com.

About MarketScout

Founded in 2000, MarketScout is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd’s Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. The company owns and operates the MarketScout Exchange, as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is the 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 & Research. MarketScout is the only insurance organization to receive The National Alliance’s exclusive partnership and endorsement. The company founded the Entrepreneurial Insurance Alliance (EIA) in 2007 to support insurance entrepreneurs and in 2017 founded the MarketScout InsurTech (MIT) venture fund. In January 2018, it launched an Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout’s company culture and sense of community encourages growth, learning and collaboration. The company has been named as one of the Best Places to Work in Insurance by Business Insurance for ten consecutive years from 2012 to 2021. The company has offices in Alabama, Arkansas, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. California license #0D60423.