For the fourth straight month, the prices have kept themselves relatively static, said a new report.
According to a recent report that was issued for June by MarketScout, the commercial insurance rates haven’t moved very much at all over the last four months, with only one exception.
In June, the business interruption line of insurance did see its rates slide downward when compared to May.
That said, the decrease that the commercial insurance rates saw in the business interruption line was only by an average of one percent, so it was clearly not a significant drop. According to the CEO of MarketScout, Richard Kerr, “We are in the insurance doldrums. There really isn’t even a breeze of significant movement anywhere.” Kerr’s firm is an insurance exchange based in Dallas.
He went on to explain that the fact that there has not been a considerable amount of movement in this sector may be “yet another signal that insurers simply are not going to participate in a price slashing war as was done in previous market cycles. Low interest rates and better underwriting tools are making insurers cautious.”
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There were a number of areas in commercial insurance that also saw just a slight amount of increase.
Those were primarily the workers’ compensation, employment practices liability, an directors and officers liability insurance lines. They rose from having been entirely flat to one percent. Again, the movement was far from significant.
As per sized based measurements, the small accounts (which were designated as those that were $25,000 and lower in premiums) were up from having been one percent to become two percent. The large accounts fell by one percent. That said, the rates for all of the other sizes of accounts remained steady, said the report. That report was compiled with the assistance of the National Alliance for Insurance Education and Research.
The commercial insurance classes evened out the changes in rates as contracting went from one percent to flat, while habitation lines had been at one percent and rose to two percent, while public entity increased from having been flat to become one percent.