2012 Begins with Rate Increases |
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Calendar year 2012 starts with a composite property & casualty rate increase of 1 percent. According to Richard Kerr, CEO of MarketScout, "The 1 percent composite increase in January matched the increase for December 2011. Workers’ compensation and catastrophe exposed property continued to exhibit the largest increases with upward adjustments of plus 2 percent." In 2012, MarketScout will start tracking personal lines rates. Mr. Kerr commented, "Beginning in February, MarketScout will post a separate market barometer for personal lines business. A composite rate for all personal lines coverages will be posted each month. Specific market pricing will be posted for personal auto, homeowners and personal articles. We will also track high value homeowners separately from traditional homeowners." 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 January 2012 rates by coverage, industry class, account size and personal lines is set forth below. |
By Coverage Class |
|
Commercial Property |
Up 2% |
Business Interruption |
Up 2% |
BOP |
Up 2% |
Inland Marine |
Flat |
General Liability |
Up 2% |
Umbrella/Excess |
Up 1% |
Commercial Auto |
Up 1% |
Workers' Compensation |
Up 2% |
Professional Liability |
Flat |
D&O Liability |
Up 1% |
EPLI |
Up 1% |
Fiduciary |
Flat |
Crime |
Flat |
Surety |
Flat |
Click image to enlarge
By Account Size |
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Small Accounts |
Up 1% |
|
Medium Accounts |
Up 2% |
|
Large Accounts |
Up 1% |
|
Jumbo Accounts |
Flat |
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Click image to enlarge
By Industry Class |
Manufacturing |
Up 1% |
Contracting |
Up 2% |
|
Service |
Up 1% |
|
Habitational |
Up 1% |
|
Public Entity |
Flat |
|
Transportation |
Up 1% |
|
Energy |
Flat |
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Click image to enlarge
Personal Lines |
Homeowners under $1,000,000 value |
Up 1% |
Homeowners over $1,000,000 value |
Up 1% |
|
Automobile |
Up 2% |
|
Personal Articles |
Up 1% |
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Click image to enlarge
For more detailed rating analysis or market projections by industry class, coverage, account size or personal lines, contact Vilma Scott at vscott@marketscout.com.
About MarketScout
The barometer is compiled by MarketScout, an insurance distribution and underwriting company headquartered in Dallas, Texas. The firm owns and operates the MarketScout Exchange at http://www.marketscout.com as well as over 40 other online and traditional underwriting and distribution venues. MarketScout launched MarketScout Wholesale, LLC (MSW) in April 2010 developing a traditional wholesale strategy complimenting its electronic underwriting and distribution strategy. MarketScout and MSW have offices in Fort Lauderdale, San Francisco, Los Angeles, Phoenix, Dallas, Austin, New Orleans, Tampa, Chicago, Washington DC and New York City.
The composite market conditions from 2001 to 2011 are set forth below.
