Personal Lines Rates Moderate
October 9, 2023
Insurers Survive 2023: Q4 2023 Personal Lines Composite Rate Up 4.75%
January 5, 2024


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US Commercial Composite Rate for 2023 Up 4.56%

Insurers relax increases in select industries

The US commercial insurance buyer paid a slightly lower premium on average in 2023 versus 2022. In the third quarter, rates were only up 3.72%, but in the fourth quarter, rates increased to 5.6%, resulting in a total rate increase for the whole of 2023 of 4.56%.

By coverage classification, property and auto rates were up the most in 2023, at plus 9.33% and plus 7.33%, respectively. Workers’ compensation was flat with no rate adjustment on average. Many states had rate decreases. Some states had workers’ compensation rate decreases.

In 2023, the transportation industry was assessed the largest rate increases by industry group at plus 7.26%.

“Calendar year 2023 settled down a bit as compared to the last few years,” said Richard Kerr, CEO of Novatae Risk Group. “Property insurers are still cautious, but they are optimistic 2024 could yield good returns, especially with the rate increases of the last several years. Throughout 2023, liability insurers assessed sensible rate increases.”

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 fourth quarter 2023 rates by coverage, cyber liability, industry class and account size is set forth below.

By Coverage Class
Commercial PropertyUp 8.3%
Business InterruptionUp 6%
BOPUp 5%
Inland MarineUp 4.3%
General LiabilityUp 5.3%
Umbrella/ExcessUp 6.7%
Commercial AutoUp 7%
Workers’ CompensationFlat 0%
Professional LiabilityUp 4.7%
D&O LiabilityUp 2.7%
EPLIUp 1.3%
FiduciaryUp 1%
CrimeUp 1.3%
SuretyFlat 0%
Cyber Liability
CyberUp 8%
By Account Size
Small Accounts - Up to $25,000Up 5%
Medium Accounts - $25,001 – $250,000Up 5.3%
Large Accounts - $250,001 – $1 millionUp 5.7%
Jumbo Accounts - Over $1 millionUp 5%
By Industry Class
ManufacturingUp 3%
ContractingUp 5.3%
ServiceUp 3.3%
HabitationalUp 6.3%
Public EntityUp 2.7%
TransportationUp 7.7%
EnergyUp 2.7%

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

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 forty 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. In November 2022, MarketScout joined Novatae Risk Group and Richard Kerr was named the combined companies’ CEO. California license #0D60423.