U.S. commercial insurance rates continue hardening trend: MarketScout

Insurance rates for businesses are still firming in the United States, with premiums increasing on average by 4% in May compared to the same month last year, according to an electronic insurance exchange and market reporting firm.

MarketScout recently reported that commercial property saw the largest rate hike, at 5%, matched by workers compensation. No line of property and casualty insurance business was flat on renewal, although the increase in fiduciary, crime and surety coverage was marginal, at 1%, according to the firm.

Smaller accounts witnessed the largest average rate increases (4%), while larger clients experienced increases closer to 1%.

“It’s not unusual for underwriters to aggressively price jumbo accounts because of the caches they bring,” said MarketScout CEO Richard Kerr in a statement accompanying the May report. “It is difficult to compare rates with smaller accounts because jumbo accounts frequently implement high retentions, captive involvement and heavy reinsurance.”