July 11, 2018 | Property Casualty 360

Author: Danielle Ling

Trucking and automobile risks suffered the greatest rate increases in the second quarter.

U.S. Property & Casualty rates increased by 2.5% on average in the second quarter of 2018, according to MarketScout’s quarterly analysis.

MarketScout, an insurance distribution and underwriting company, compiles the Commercial and Personal Lines Market Barometers and breaks down each of their quarterly analyses rates by coverage, industry class, and account size.

Comparing Q1 to Q2, property, auto, D&O, and EPLI rates increased, while business interruption and general liability rates moderated. Workers’ compensation ratesdecreased from -2% to -3%. All other coverage classifications held steady as shown in the graphic above.

Looking at industry class, the Q2 results for these categories highlight an important trend about trucking and auto risks, which continue to see rate increases. Transporation risks experienced a 6% increase, compared to a 4% increase in Q1.

“Insurers seem to have a longer memory these days. It’s hard to find a commercial insurer who hasn’t suffered from a book of auto/trucking risks in the past ten years,” Richard Kerr, CEO of MarketScout, noted in a statement.

“As a result of prior bad experiences and the challenges we outlined in our first quarter 2018 barometer, there are fewer companies willing to write auto or trucking risks. The demand is exceeding the supply so rates continue to trend upward.”

As for the remaining industry class results, habitational, service, contracting, and manufacturing risks were charged a slight rate increase from the first quarter of 2018 to the second. All other industry groups remained unchanged.