Richard Kerr, CEO of MarketScout noted, “Rate increases are continuing. We believe the slight moderation in energy rates in the fourth quarter 2020 is an anomaly based on the considerable reduction in exposures in the oil and gas sector. Rates for public entities were also relatively modest.”
In reviewing the results for all of 2020, the composite rate increase was 5.6 percent. Mr. Kerr noted, “Composite rates for property and casualty insurance have traded in a relatively tight corridor the last ten years as compared to the ten-year period of 2001 to 2010 when rate swings were considerably more volatile. Improved underwriting tools, catastrophe modeling and more thoughtful reinsurance placements have taken most of the severe peaks and valleys out of the market. Simply stated, underwriters are smarter than they were 15 years ago. The exceptional underwriting and technology tools help make for a more stable market.”
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.
A summary of the fourth quarter 2020 rates by coverage, industry class and account size is set forth below.
|
By Coverage Class |
|
|
Commercial Property |
Up 9% |
|
Business Interruption |
Up 5.7% |
|
BOP |
Up 5.7% |
|
Inland Marine |
Up 4.3% |
|
General Liability |
Up 6% |
|
Umbrella/Excess |
Up 12.7% |
|
Commercial Auto |
Up 8.3% |
|
Workers’ Compensation |
Up 0.7% |
|
Professional Liability |
Up 10.3% |
|
D&O Liability |
Up 11.7% |
|
EPLI |
Up 6.7% |
|
Fiduciary |
Up 3% |
|
Crime |
Up 2.7% |
|
Surety |
Up 1% |