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Rate Increases Continue in Q1 2022

Insurers Continue Increases for All Lines of Business

As losses mount, insurance companies and their reinsurers continue to assess rate increases across all lines of coverage and industry groups. The composite rate increase for the first quarter of 2022 was 6 percent as compared to 5.8 percent for the fourth quarter of 2021.

“Rates in January and February were consistent with what was reflected in the last quarter of 2021,” commented Richard Kerr, CEO of MarketScout. “However, rates did start to move up even more in March 2022, which could be the beginning of stronger increases for the next several quarters.”

When measuring rates by coverage classifications, rates were most aggressive in the first quarter 2022 for cyber, umbrella and D&O at plus 19.7 percent, 9.7 percent and 8.7 percent respectively.

By industry classification, transportation and habitational rates increased the most at plus 10.3 percent and 8 percent respectively.

Small and medium size account rates moved up to 5.3 percent and 6.3 percent respectively. Rates for large and jumbo accounts were steady at an increase of 6.7 percent.

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 first quarter 2022 rates by coverage, cyber liability, industry class and account size is set forth below.”

By Coverage Class
Commercial Property	Up 7.6%
Business Interruption	Up 6.3%
BOP	Up 6.3%
Inland Marine	Up 4.7%
General Liability	Up 5%
Umbrella/Excess	Up 9.7%
Commercial Auto	Up 7.3%
Workers’ Compensation	Up 1%
Professional Liability	Up 5.7%
D&O Liability	Up 8.7%
EPLI	Up 7%
Fiduciary	Up 2.3%
Crime	Up 1.3%
Surety	Up 1.3%

Cyber Liability
Cyber	Up 19.7%

By Account Size
Small Accounts	Up 5.3%
Up to $25,000

Medium Accounts	Up 6.3%
$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 6.7%
Contracting	Up 6%
Service	Up 6%
Habitational	Up 9%
Public Entity	Up 5.3%
Transportation	Up 10.7%
Energy	Up 7%

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 Arkansas, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. California license #0D60423.