The MarketScout and IVANS commercial insurance market indexes are revealing a mixed bag in terms of rates for the 2017 third quarter.
First, the MarketScout composite rate index for commercial accounts in the United States, which tracked an average 1 percent increase for the quarter.
Broken down further, by coverage classification, only commercial auto rates saw growth, from plus 4 to plus 5 percent over the previous quarter. On the other hand, inland marine, professional, directors and officers, EPLI, crime and surety rates dipped by 1 percent, MarketSout said. Rates for all other coverages stayed the same.
By industry class, manufacturing, contracting, service, habitational and public entity were all up slightly, and transportation grew 5 percent. Energy remained flat, however.
MarketSout CEO Richard Kerr noted in prepared remarks that “the recent hurricanes have not impacted property rates for the third quarter,” but adjustments will likely hit in Q4.
The Ivans renewal rate index, meanwhile, noted a variation of premium renewal rate change averages across Business Owner’s policy, commercial property and workers compensation versus Q2. That said, only workers compensation saw actual negative premium renewal rate changes, according to IVANS.
Diving deeper, IVANS found that:
- Commercial auto had a premium rate change average of 3 percent for the quarter, up from Q2 and ending at 2.55 percent for September.
- Business owners policy saw a 3.79 percent change, dipping from the previous quarter’s average of 4.21 percent. The renewal rate change ended the quarter at 3 .87 percent in September.
- General liability Q3 premium was essentially flat during the quarter compared to Q2, with the renewal rate change low reaching 1.68 percent in August and ending the quarter in September at 1.7 percent.
- Commercial property Q3 premium renewal rate changes hit an average of 2.48 percent, down from 3.08 percent in Q2.
- Umbrella coverage rate changes averaged 1.47 percent in Q3, compared to just under 1 percent in Q2.
- Workers compensation premium renewal rate change averaged -1.18 percent during Q3, versus a -0.16 percent dip in Q2.
Matt Foran, vice president of IVANS markets, said that the index overall shows “positive momentum for the market and highlight[s] the most profitable opportunities for the industry.”
Sources: MarketScout, IVANS