Rates Continue to Increase at Close of 2019

Fourth quarter rates for commercial insurance placements across the United States increased 5 percent. The steady trend of upward rate movement reflects insurers plans to continue increasing prices across all lines of coverage with workers’ compensation being the only exception. Richard Kerr, CEO of MarketScout noted, “Auto rate increases have been up all year long; however, D&O and professional rate increases have spiked significantly in the fourth quarter.” According to Kerr, “Insurers are utilizing the many catastrophe modeling tools to carefully analyze their property exposures. We expect many of the major property catastrophe insurers to curtail their 2020 writings in California brush and East and Gulf Coast wind areas. Naturally, this will result in higher rates to insureds.” 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 18 years.

View Graph  

Commercial lines rate changes throughout 2019

By Coverage Class
Commercial Property	Up 5.25%
Business Interruption	Up 5%
BOP	Up 3.5%
Inland Marine	Up 4%
General Liability	Up 4.25%
Umbrella/Excess	Up 5.5%
Commercial Auto	Up 8%
Workers’ Compensation	Down 1%
Professional Liability	Up 6%
D&O Liability	Up 8.25%
EPLI	Up 4.25%
Fiduciary	Up 3.5%
Crime	Up 3.25%
Surety	Up 2%

View Graph  

By Account Size
Small Accounts	Up 5%
Up to $25,000
Medium Accounts	Up 4.5%
$25,001 – $250,000
Large Accounts	Up 5.5%
$250,001 – $1 million
Jumbo Accounts	Up 5.5%
Over $1 million

View Graph  

By Industry Class
Manufacturing	Up 3.5%
Contracting	Up 5.25%
Service	Up 5%
Habitational	Up 8.25%
Public Entity	Up 4.25%
Transportation	Up 9%
Energy	Up 3.25%

View Graph   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, California, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at MarketScout.com. California license #0D60423