MarketScout data shows growth of commercial insurance rates
Commercial insurance rates continue to rise in the U.S., according to data from MarketScout, an insurance quotes firm. Rates have risen for four consecutive months throughout the country for various reasons, including the impact of natural disasters, fraud, and general issues involving theft and regulatory changes. Commercial insurance rates are expected to continue growing in the foreseeable future, especially where vehicle and property coverage is involved. Exactly how quickly rates will grow is not certain.
Rates grow by 5% in June of this year
According to MarketScout, commercial insurance rates grew by 5% throughout the U.S. in June of this year. This is the fourth consecutive month in which these rates have inflated and the firm predicts that rates will continue to grow in the months to come. MarketScout notes that commercial auto insurance has seen the most growth in this regard, accounting for an average increase of 6%. The property sector has experience a growth of 5% in its rates during June.
Natural disasters and other issues contribute to growing rates
There are several issues that are affecting the cost of commercial insurance, with the potential damage that can be caused by natural disasters being considered one of the major contributing factors. In 2012, Hurricane Sandy dealt a powerful blow to the Eastern U.S., showing exactly how much damage a powerful hurricane can cause to property and vehicles, as well as to other commercial insurance sectors. Growing rates are not entirely due to problematic issues, of course, as they are also a sign of the financial growth of the insurance industry as a whole.
MarketScout considers commercial insurance sector to be stable
MarketScout suggests that the current commercial insurance market is relatively steady. The firm notes that there were no significant surprises or unforeseen increases in commercial insurance costs throughout June. Perhaps most importantly, the firm suggests that the problems caused by Hurricane Sandy, including those that have yet to be resolved, seem to have been completely forgotten by many property insurance groups. This may be due to the fact that most of the damage caused by the storm came from flooding, which is not something that the U.S. insurance industry is responsible for.