Rates Surge Last Quarter

Commercial insurance premium rates surged forward last quarter with double digit increases in the five property/casualty lines, according the Council of Insurance Agents & Brokers 2nd quarter Commercial P/C Market Index. Data show less than one percent of all survey respondents from across the United States, reported any decrease in small, medium or large property and casualty accounts. In fact, the national and regional data from the second quarter 2001 survey – which includes July 1 renewals – seems to indicate the market continues upward. For the quarter ended June 30, 80 percent of brokers responding to the survey reported price increases of from one to 30 percent for small, medium and large commercial accounts. For medium and large accounts, more than 10 percent of respondents said increases were greater than 30 percent. Hard market trends continued in all five commercial lines: auto, workers’ compensation, property, general liability, and umbrella. Over 80 percent of those surveyed continued to say these lines were “somewhat hard” or “very hard.” Once again, brokers reported the greatest increases occurred in accounts with poor loss experience. Increases ranged from 30 to 100 percent for umbrella, nursing homes, trucking, construction and property, particularly property with catastrophic exposures.

Topics Property Property Casualty