The composite rate for commercial insurance in the US remains elevated, according to Novatae Risk Group’s insurance distribution and underwriting company MarketScout.
In its Market Barometer for the first quarter of 2024, Dallas-headquartered MarketScout said commercial insurance rates in the US went up by 3.9% in the period amid persistent worries surrounding catastrophes and liability outcomes.
“January and February posted very modest rate increases; however, rates were trending upward more aggressively in March,” Novatae chief executive Richard Kerr (pictured) noted.
“Property insurers are nervous about the 2024 catastrophe season. Liability insurers are more calm but economic conditions and incurred, but not yet reported, claim estimates may impact rates later in 2024.”
It was highlighted that the 3.9% increase in Q1 2024 was less steep compared to the 5.6% hike observed in the fourth quarter of 2023.
Breaking down the numbers, MarketScout reported the following rate increases in the first three months of the year:
|
Coverage class |
Increase |
|
Commercial property |
6.3% |
|
Business interruption |
5% |
|
BOP |
3.7% |
|
Inland marine |
3.3% |
|
General liability |
3.25% |
|
Umbrella/excess |
6.3% |
|
Commercial auto |
6.7% |
|
Workers’ compensation |
0% |
|
Professional liability |
3.7% |
|
D&O liability |
2.7% |
|
EPLI |
1% |
|
Fiduciary |
1% |
|
Crime |
1.3% |
|
Surety |
1% |
MarketScout’s Market Barometer is a quarterly report of the industry’s composite rate index for property & casualty and personal insurance. Aside from the figures listed above, the report also includes a breakdown in terms of industry class and account size, as well as information on cyber liability.
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