The composite rate index for property and casualty placements across the U.S. measured down two percent in May. MarketScout CEO, Richard Kerr, commented on the May results, "The market was stable in May with small movements in coverage, industry, and size classifications. As we have seen in the past, larger premium accounts were priced more aggressively. Overall, the composite rate was down 2 percent in May, matching the rate for April."
By coverage classification, rates for property, business interruption, professional, auto, D&O, and surety all moderated 1 percent compared to April. Crime coverage increased from flat to plus 1 percent.
As measured by premium volume, accounts over $250,000 were priced slightly more aggressive in May at minus 3 percent compared to minus 2 percent in April. All other account sizes remained unchanged.
Industry classifications are examined to determine rate movement as measured when grouping accounts according to their SIC codes. SIC codes are then amalgamated into seven different segments. The only changes in rates in May versus April were in habitational, which moderated from minus 3 percent to minus 2 percent, and energy, which was priced a bit more aggressively at minus 2 percent compared to minus 3 percent. All other industry classifications were unchanged compared to the prior month.
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.