Commercial lines insurance – what’s happening?

Composite commercial insurance rates in the US held steady in the second quarter, according to a report by MarketScout.

Businesses in the US were assessed an average composite rate increase of 5% in Q2, the report found.

“While the composite rate held steady in the second quarter, there was some movement in various lines of insurance,” said Richard Kerr (pictured above), CEO of MarketScout and Movatae Risk Group. “Property, business interruption, general liability and umbrella/excess rates increased, while most other coverage classifications softened a bit.”

By account size, rates crept up slightly in all size categories, MarketScout reported. By industry classification, transportation saw the largest rate hike at 7.3%.

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See below for second-quarter rates by coverage class, cyber liability, industry class and account size:

By coverage class:

• Commercial property: up 10.7%
• Business interruption: up 6%
• BOP: up 3.2%
• Inland marine: up 5%
• General liability: up 7%
• Umbrella/excess: up 7%
• Commercial auto: up 8%
• Workers’ compensation: up 0.3%
• Professional liability: up 4.7%
• D&O liability: up 4.7%
• EPLI: up 4%
• Fiduciary: up 1.7%
• Crime: up 1%
• Surety: up 1%

Cyber liability:

• Cyber: up 13.3%

By account size:

• Small accounts (up to $25,000): up 5.7%
• Medium accounts ($25,001-$250,000): up 6%
• Large accounts ($250,001-$1 million): up 6%
• Jumbo accounts (over $1 million): up 4.7%

Dallas-based MarketScout, founded in 2000, 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 numerous specialty programs. The company owns and operates the MarketScout Exchange as well as more than 40 other online and traditional underwriting and distribution venues.

MarketScout was acquired by Novatae Risk Group in November 2022.

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