Insurance renewals in May showed premiums in the U.S. to be steady except when there were changes in the exposure base, according to MarketWatch. Rates are stable and most commercial accounts are securing renewal terms as they expire.
“A lot of business renewed in May 2015. Overall, rates largely continue in a holding pattern. It seems both insureds and insurers are content to move forward with little to no changes,” Richard Kerr, CEO of MarketScout said in a statement. “The only notable exception is transportation where the auto portion of these accounts is driving an average 2% increase.”
Business Owners Policies (BOP) were up from flat to plus 1% in May as compared to April 2015. EPLI coverage was down from plus 1% to flat, or 0% increase, MatketWatch said. By account size, rates matched April. Jumbo accounts (more than $1 million premium) continue to show the greatest reductions at minus 2%. Small (up to $25,000 premium) and medium ($25,001 to $250,000 premium) accounts were up 1%.
Contracting was the only industry classification to change from April to May 2015. Contracting was up 1%.
MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. The firm owns and operates the MarketScout Exchange at marketscout.com as well as more than 40 other online and traditional underwriting and distribution venues.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions.
May 2015 rates by coverage, account size and industry class:
