Commercial insurance rates were up about five percent in March, according to the latest barometer from MarketScout and the National Alliance for Insurance Education and Research.
Manufacturing continues to post the largest rate increases as compared to prior year results followed by contracting, service, habitational and transportation.
Workers’ compensation, professional and small commercial all received more aggressive month-over-month price increases, the survey found.
MarketScout CEO Richard Kerr said the results show that large premium or brand name accounts are no longer being favored with pricing breaks.
“Historically, underwriters have been very aggressive in pricing name brand or large accounts. Other than the cache or bragging rights, there are few sound underwriting reasons for aggressively pricing large accounts,” said Kerr. “Risk is risk and exposure is exposure. In March, underwriters more frequently assessed an appropriate premium for large accounts.”
Kerr said the data from March showed a significant reversal in pricing strategy for both large ($250,001 to $1,000,000 premium) and jumbo (over $1,000,000 premium) accounts.
In February, rate increases for large accounts measured plus three percent and for jumbo account plus two percent. These increases adjusted to plus five percent for both in March.
“There is also a considerable amount of chatter amongst underwriters regarding pricing in this area so we will be monitoring the situation very carefully,” Kerr said
The National Alliance for Insurance Education and Research conducted the pricing surveys used in MarketScout’s analysis of market conditions.
Below are summaries of the March results provided by MarketScout.
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