In November 2012, the overall composite rate for insuring commercial accounts in the United States was up 5 percent as compared to November 2011.
By coverage classification, property, excess liability, general liability and workers' compensation rates increased the most at plus 5 percent. By account size, all accounts under $1,000,000 premium were up 5 percent as compared to November 2011. Jumbo accounts over $1,000,000 premium were actually down from plus 2 percent in October to plus 3 percent in November. By industry class, manufacturing had the most significant month on month rate increase at plus 6 percent as compared to plus 4 percent the prior month. Transportation accounts were also up 6 percent.
"The manufacturing rate increase was surprising," said Richard Kerr, CEO of MarketScout. "Normally, manufacturing is a very stable industry class absent quick pricing changes. Going from plus 4 percent to plus 6 percent was unusual. As for transportation, the trucking segment of this industry class is what is really driving the rate increases for the class at plus 6 percent. The losses suffered by the trucking market have been considerable over the last several years. We expect further rate increases for trucking exposures."
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.