View from the top: Richard Kerr, Novatae Risk Group
December 1, 2022
Composite Personal Lines Rates Increase 5.2% in Fourth Quarter 2022
January 6, 2023


MarketScout logo

US Commercial Lines Insurance Composite Rate Increases 5.1% in Fourth Quarter 2022

Annualized 2022 Rate Increase is 5.7%


The composite rate for US commercial insurance rates was up 5.1% in the fourth quarter of 2022. Annualized, the composite rate for 2022 is 5.7%, resulting in commercial rate increases for the sixth consecutive year.

The composite rate for all property insurance continues to be challenging with a rate increase of 9.3% in the fourth quarter. Certain cat-exposed commercial properties are being assessed increases as high as 25% to 30%.

“On January 1, 2023, property cat reinsurance renewals were completed except in instances of poor underwriting and continuous losses,” said Richard Kerr, Founder of MarketScout and now CEO of newly formed Novatae Risk Group. “Virtually everyone was assessed more restrictive terms and conditions. The trickle down will have a notable effect on the profits of property MGAs and program managers due to lower base commissions.”

Cyber insurance rates continue to increase the most aggressively at plus 20% in the fourth quarter. However, there is a trend towards slight moderation.

By industry classification, contractors and trucking risks were assessed the highest rate increases in the fourth quarter at plus 6% and 7.3% respectively.

Kerr forecasted the 2023 insurance environment by noting, “If there is a slowdown in the economy and/or the Fed continues to increase interest rates, we may well see moderation in insurance rates. In the early 1980s, insurers did account for an interest income float on premiums received, better known as Cash Flow underwriting. This concept was mostly applied to longer tail casualty lines which have slower and longer claims pay outs. As insurers accounted for the increased income from interest rate payments on premiums paid, rates were adjusted downward. Arguably, an insurer could write at a 100% combined loss ratio because the interest they received on booked premiums was 12% to 20%. We are a long way from seeing interest rates at those levels, but even at 5% it will have a positive impact on the ROI of some insurers, possibly resulting in a moderation of 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.

The following graphic reflects rate changes in US commercial insurance for the last 21 years.

A summary of the fourth quarter 2022 rates by coverage, industry class and account size is set forth below.

By Coverage Class
Commercial Property Up 9.3%
Business Interruption Up 3.7%
BOP Up 5%
Inland Marine Up 3.7%
General Liability Up 6.7%
Umbrella/Excess Up 7.7%
Commercial Auto Up 7%
Workers’ Compensation Flat 0%
Professional Liability Up 5.3%
D&O Liability Up 6%
EPLI Up 6.3%
Fiduciary Up 2.3%
Crime Up 2%
Surety Up 1.3%

Cyber Liability
Cyber Up 20%
By Account Size
Small Accounts Up 6%
Up to $25,000
Medium Accounts Up 5.3%
$25,001 – $250,000
Large Accounts Up 4%
$250,001 – $1 million
Jumbo Accounts Up 5.6%
Over $1 million

By Industry Class
Manufacturing Up 4.7%
Contracting Up 6%
Service Up 5.3%
Habitational Up 6%
Public Entity Up 5%
Transportation Up 7.3%
Energy Up 5.7%

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