Posted on 07 May 2012
The composite rate for commercial property, casualty and professional lines coverage increased 3 percent in April 2012 as compared to one year ago. Workers’ compensation and property coverage rates rose the most at plus 4 percent, the same as in March 2012. BOP, general liability and D&O rates increased slightly from March to April.
Richard Kerr, CEO of MarketScout, outlined the April results by noting, "Each industry and coverage class we monitor includes placements with both admitted and non-admitted insurers. Recently, we have noticed admitted and non-admitted insurers are pricing similarly. 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 non-admitted insurers as admitted insurers begin to restrict their risk appetite and simply decline to write tougher accounts."
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.