In a “deliberate and modest fashion,” the composite rate for commercial property and casualty lines increases 5% during the first quarter 2023, according to MarketScout.
The Dallas-based distribution and underwriting company’s Market Barometer showed cyber lead the way with a rate increase of 15.7% during the first three months of the year. Commercial property was up 9.3%, and commercial auto was plus 7.3%.
MarketScout said the only notable change from the fourth quarter 2022 was in general liability – up 4.3% in Q1 compared with up 6.7% last quarter. EPLI also saw a decrease in rate hikes to plus-3.7% from 6.3% in Q4 2022.
“It’s not surprising to see rates holding stead in the first quarter,” said Richard Kerr, CEO of Novatae Risk Group. Last November, MarketScout was acquired by managing general agent Novatae Risk Group. Kerr was named CEO. “We will get a better measure of overall composite rates for 2023 in the next two quarters.”
Looking at composite rate increases by industry, transportation was highest with an increase of 8%.
The composite rate for personal lines decreased slightly to plus 5% in Q1, said MarketScout. Increases for homeowners and personal articles insurance moderated but auto insurance rates were up 6.3% compared to 5% in Q4 2022, on a composite basis.
“The real action in personal lines comes during wind and wildfire season,” said Kerr. “However, even now, catastrophe exposed high value property owners are struggling to find coverage without experiencing significant rate increases and restriction of terms such as higher deductibles and reduced coverage.”
Topics Trends Commercial Lines Pricing Trends Property Casualty
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