"Property insurers are nervous"

“Property insurers are nervous” | Insurance Business America

Property

“Property insurers are nervous”

Report examines increased commercial insurance rates

Property

By
Terry Gangcuangco

The composite rate for commercial insurance in the US remains elevated, according to Novatae Risk Group’s insurance distribution and underwriting company MarketScout.

In its Market Barometer for the first quarter of 2024, Dallas-headquartered MarketScout said commercial insurance rates in the US went up by 3.9% in the period amid persistent worries surrounding catastrophes and liability outcomes.

“January and February posted very modest rate increases; however, rates were trending upward more aggressively in March,” Novatae chief executive Richard Kerr (pictured) noted.

“Property insurers are nervous about the 2024 catastrophe season. Liability insurers are more calm but economic conditions and incurred, but not yet reported, claim estimates may impact rates later in 2024.”

It was highlighted that the 3.9% increase in Q1 2024 was less steep compared to the 5.6% hike observed in the fourth quarter of 2023.

Coverage class

Increase

Commercial property

6.3%

Business interruption

BOP

3.7%

Inland marine

3.3%

General liability

3.25%

Umbrella/excess

6.3%

Commercial auto

6.7%

Workers’ compensation

Professional liability

3.7%

D&O liability

2.7%

EPLI

Fiduciary

Crime

1.3%

Surety

MarketScout’s Market Barometer is a quarterly report of the industry’s composite rate index for property & casualty and personal insurance. Aside from the figures listed above, the report also includes a breakdown in terms of industry class and account size, as well as information on cyber liability.

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