MarketScout: P/C Rates Up 3% in April
On May 4, MarketScout reported that the composite rate for commercial property and casualty and professional lines insurance rose 3 percent in April 2012, with workers’ compensation and commercial property insurance experiencing the largest increases at 4 percent each. Business owners' policies and general liability rates each rose just 3 percent, and price increases were uniform across industry classes with increases of 3 percent for manufacturing, contracting, services, transportation, and energy sectors. MarketScout CEO Richard Kerr says that business for nonadmitted insurers could rise as they begin pricing similarly to admitted insurers. “Historically, there has been a considerable difference in the underwriting approaches among the various types of insurers. The recent similar pricing strategies could ultimately lead to more business for the nonadmitted insurers as admitted insurers begin to restrict their risk appetite and simply decline to write tougher accounts,” he said.
Read more on p/c rates in April: P/C Rates Up 3% in April (Business Insurance 5/4/12)