Third Quarter Personal Lines Composite Rate Up 5%
October 5, 2020
Commercial insurance rates up across the board in Q3: MarketScout
October 6, 2020
Third Quarter Composite Rate Increase 6.25%
D&O and Umbrella Rates Register Largest Increase
At the close of the third quarter 2020, insurance buyers were assessed rate increases on every line of coverage and industry class.
Richard Kerr, CEO and Founder of MarketScout, profiled the current market environment by pointing out, “The composite rate is up 6.25 percent for the third quarter 2020 as compared to up 4.8 percent in the second quarter. Rates began adjusting upward at a quicker pace in September. We expect the fourth quarter 2020 will reflect continued aggressive rate increases in property, D&O and umbrella/excess liability coverages.”
D&O rates were up the most at plus 11.5 percent followed by umbrella and excess liability which registered an increase of 8.5 percent. For the first time in over five years, workers’ compensation rates were up, albeit only .5 percent but they were up.
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 third quarter 2020 rates by coverage, industry class and account size is set forth below.
| By Coverage Class | |
| Commercial Property | Up 7% |
| Business Interruption | Up 5.5% |
| BOP | Up 5% |
| Inland Marine | Up 5% |
| General Liability | Up 5.5% |
| Umbrella/Excess | Up 8.5% |
| Commercial Auto | Up 8% |
| Workers’ Compensation | Up 0.5% |
| Professional Liability | Up 7.5% |
| D&O Liability | Up 11.5% |
| EPLI | Up 6.5% |
| Fiduciary | Up 3% |
| Crime | Up 3.5% |
| Surety | Up 0.5% |
| By Account Size | |
| Small Accounts | Up 6% |
| Up to $25,000 | |
| Medium Accounts | Up 7% |
| $25,001 – $250,000 | |
| Large Accounts | Up 7% |
| $250,001 – $1 million | |
| Jumbo Accounts | Up 6% |
| Over $1 million | |
| By Industry Class | |
| Manufacturing | Up 4.5% |
| Contracting | Up 6% |
| Service | Up 5% |
| Habitational | Up 8% |
| Public Entity | Up 6.5% |
| Transportation | Up 10.5% |
| Energy | Up 4.5% |
For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@marketscout.com.
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, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at MarketScout.com. California license #0D60423