US commercial rates continue stable rise over Q2, cyber rates increase the most: MarketScout

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Data from MarketScout shows that US commercial P&C insurance rates are stabilising at a combined increase of 5.91% in Q2 2022, virtually matching the rate increases of the previous quarter.

However, cyber rates are surging upward, they have increased the most at over 21.3% from more than 19.7% in Q1 2022.

In contrast, umbrella rates moderated slightly by increasing 8.7% in Q2 as compared to an increase of 9.7% in the first quarter of 2022.

As measured by line of coverage commercial property was up 8.3%, commercial auto up 9% and D&O liability up 8.3%.

For other classes, MarketScout’s data showed that business interruption were up 7%, BOP up 6%, inland marine up 3.7% and general liability up 5.3%,

Workers’ compensation was up 1%, professional liability up 5.6%, EPLI was up 5%, fiduciary up 2%, crime up 1.7% and surety up 1.7%.

Medium sized accounts experienced the largest rate increase in the second quarter of 2022 at plus 7%, from $25,000 to $250,000 in premium.

Small Accounts were up 5.7%, $25,000; large accounts were up 6%, $250,001 – $1 million; and jumbo Accounts were up 6.3%, over $1 million.

By industry classification, transportation is still being assessed with the highest rate increases at plus 8.7%.

Richard Kerr, CEO of MarketScout outlined the current rating environment by noting: “Mother nature and litigation heavily impact rate increases, but as we all know, we can’t realistically control either.

“Hurricane season is upon us and soon to be followed by wildfire season. If we have big events, the increase in property rates will come quickly.”

Kerr further commented on economic cycles which may impact insurance rates, he said: “Inflation can create a need for rate increases, so we may see that impact over the next four quarters.

“As for rate decreases, it’s possible higher interest rates could provide insurers with additional investment income which could moderate rate decreases, especially on long tail business.”

The post US commercial rates continue stable rise over Q2, cyber rates increase the most: MarketScout appeared first on ReinsuranceNe.ws.

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