After four months of rate increases at 5 percent, the property and casualty insurance market has moderated. The July 2013 rate increase was promulgated at plus 4 percent.
Rate increases for commercial auto, workers' compensation, D&O and EPLI all moderated by 1 percent. Fiduciary rates were up slightly from plus 2 percent to plus 3 percent. Large account ($250,001 to $1,000,000 premium) rate increases moderated from plus 4 percent to plus 3 percent. By industry classification, every industry group except for public entity business moderated by 1 percent. Graphics included in the report present full results for each coverage, account size and industry classification.
MarketScout's CEO, Richard Kerr, profiled the adjustment by noting, "The market is quiet. Many underwriters, insurers, and brokers are on holiday after securing their July 1 renewals. Without any catastrophic events, it is natural to see the market drift downward. We will have a much better feel for where things are headed once the results are tabulated for September and October."
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.