U.S. Commercial P&C Insurance Rates Rise 4.3% in Q2

A slight overall rise in commercial property/casualty insurance rates reflects insurers' confidence in pricing strategies, according to MarketScout.
By: | July 9, 2024
Topics: Insurance | News
P&C insurance rate increases

A composite of commercial property/casualty insurance rate hikes rose to 4.36% in the second quarter from 3.9% in the first quarter, according to Market Scout’s Market Barometer.

Richard Kerr, CEO of MarketScout’s parent, Novatae Risk Group, attributed the slight increase in the composite rate to insurers’ confidence in their pricing strategies.

“Insurers are comfortable with their pricing, and as a result, there was no significant movement in rates for any coverage or industry group,” Kerr said, adding that the onset of hurricane and wildfire season could potentially impact property rates in coming quarters.

The National Alliance for Insurance Education and Research conducted pricing surveys that corroborated MarketScout’s analysis of market conditions. These surveys, driven by new and renewal placements across the U.S., provided further insight into the rate changes.

In terms of coverage class, commercial property rates and commercial auto saw the most significant increases, up 7% and 8%, respectively in the second quarter. Workers’ compensation remained flat at 0%. Among casualty lines, cyber liability saw a 6.7% increase, while general liability, umbrella/excess and employment practices liability insurance (EPLI) all saw a 4.7% increase in 2Q.

Account size also played a role in premium increases, MarketScout found. Small accounts, those with premiums up to $25,000, saw a 5.7% increase in premiums in the second quarter. Medium accounts ($25,001 to $250,000) experienced a 5.3% increase, while large ($250,001 to $1 million) and jumbo (over $1 million) accounts both saw a 4.3% increase.

By industry class, the transportation sector witnessed the highest increase in premiums at 7.3%, followed by habitational at 6%. Manufacturing and energy sectors saw a modest increase of 4.3% and 2% respectively.

To view the full results, visit MarketScout’s website. &

The R&I Editorial Team can be reached at [email protected].

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