Dallas-based electronic insurance exchange MarketScout reported Monday that commercial insurance rates rose 4% year-over-year in October. This represented a slip from the 5% rate increase registered year-over-year in September.
Property, business owners and general liability rate increases moderated to 5% in October from 6% in September, said MarketScout, which added that these three coverages represent a large volume of business, thus the drop in the overall composite rate to 4% from 5%. Workers compensation rates increased the most, up 6% in October from those of the same period a year earlier.
“While the composite rate may have moderated in October, we believe Superstorm Sandy will cause a month-on-month composite rate increase in November,” said Richard Kerr, CEO of MarketScout, in a statement. “It will take months before we know the magnitude of insured claims, but as time passes, the projection for insured losses continues to increase.”