October 5, 2020 | Business Insurance
Author: Claire Wilkinson
Commercial insurance buyers in the U.S. were hit with rate increases on every line of coverage and industry class in the third quarter, with directors and officers and umbrella liability seeing the largest rate hikes, online insurance exchange MarketScout Corp. said Monday.
D&O rates increased by 11.5 percent, followed by umbrella and excess liability up 8.5 percent in a quarter in which the average rate increase was 6.25%, MarketScout said in a statement. The average rate increase in the second quarter was 4.8%.
Workers compensation rates rose by 0.5% — the first increase this line of business has seen in over five years.
“We expect the fourth quarter of 2020 will reflect continued aggressive rate increases in property, D&O and umbrella/excess liability coverages,” MarketScout CEO Richard Kerr said in the statement.
Commercial auto rates increased by 8% in the third quarter, while professional liability increased by 7.5% and commercial property rates were up 7%.
All other lines showed smaller increases, according to Dallas-based MarketScout.
By industry class, transportation and habitational saw the highest average rate increases in the quarter at 10.5% and 8%, respectively.
Large accounts, those with $250,001 to $1 million in premium, and medium accounts, from $25,001 up to $250,000 in premium, saw the largest rate hikes, up 7%.