Commercial Lines Flat in May; Auto Climbs 2%

Commercial auto led the way for commercial-lines rate increases in May — a month where rates overall were flat year-over-year, according to MarketScout’s latest Market Barometer.

“A lot of business renewed in May 2015,” says Richard Kerr, CEO of MarketScout, in a statement. “Overall, rates largely continue in a holding pattern. It seems both insureds and insurers are content to move forward with little to no changes.”

He adds, “The only notable exception is transportation where the auto portion of these accounts is driving an average 2% increase.”

In general, notes MarketScout, rates are holding steady unless a risk’s exposure base has changed.

By line, in addition to commercial auto, commercial property and business owners also showed an average year-over-year rate increase in May — both by 1%. All other commercial lines were flat.

By account size, jumbo accounts (over $1,000,000 premium) showed a 2% rate decrease in May while small (up to $25,000) and medium accounts ($25,001-$250,000) were up 1%. Large accounts were flat.

By industry class, contracting, habitational and transportation were up 1% in May while manufacturing, service, public entity and energy were all flat.