Commercial Insurance Rates Rise in 2018 Q4
Most commercial property and casualty line rates rose by an average of 2% in the last quarter of 2018, according to a report by MarketScout Corp.
The insurance distribution and underwriting company found that commercial auto insurance lines had the largest rate increase for the quarter at 7%, while commercial property insurance rates were up by 2.5%. All other lines had smaller increases, while workers compensation rates fell by 15%.
As a class, transportation saw the highest increase of 6%, and contractors experienced increases of 2.5% for the quarter.
“Ample capacity remains in the commercial insurance market. Rates for all coverage classifications other than workers compensation are increasing at a controlled, slow pace,” MarketScout CEO Richard Kerr said. “Only transportation and commercial auto exposures are suffering large rate increases.”
While commercial rates have increased, reinsurance rates were mostly stable at the beginning of 2019 during renewals. More remains to be seen as the year continues and the market grows.