June 8, 2012 by Canadian Underwriter
Insurance rates for businesses are still firming in the United States, with premiums increasing on average by 4% in May compared to the same month last year, according to an electronic insurance exchange and market reporting firm.
MarketScout recently reported that commercial property saw the largest rate hike, at 5%, matched by workers compensation. No line of property and casualty insurance business was flat on renewal, although the increase in fiduciary, crime and surety coverage was marginal, at 1%, according to the firm.
Smaller accounts witnessed the largest average rate increases (4%), while larger clients experienced increases closer to 1%.
“It’s not unusual for underwriters to aggressively price jumbo accounts because of the caches they bring,” said MarketScout CEO Richard Kerr in a statement accompanying the May report. “It is difficult to compare rates with smaller accounts because jumbo accounts frequently implement high retentions, captive involvement and heavy reinsurance.”
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