Between April and May, commercial and personal insurance rates held steady at -2% and +1%, respectively, according to the latest MarketScout pricing survey.

By commercial coverage class, property, business interruption, auto and D&O rates all moderated a percentage point since April, while crime and surety rates increased by the same amount. On average, accounts valued more than $250,000 encountered slightly more aggressive pricing in May, shifting to -3% from -2% in April.

“The market was stable in May, with small movements in coverage, industry and size classifications,” summarizes Richard Kerr, MarketScout CEO. “As we have seen in the past, larger premium accounts were priced more aggressively.”

In personal lines, rates for all homeowners averaged +1%, as did pricing for auto and personal articles. But the personal lines market may not stay calm for long.

“Personal lines insurers have been pummeled with hail, flood and tornado claims this spring,” Kerr points out. “This is not a particularly good start to the year, and many insurers are concerned about additional losses in the remaining seven months of 2016.”

Although rate adjustments could certainly be more severe, Kerr says insurers are primarily concerned about losing business to new market entrants that are buying their way into the market.

“Despite competition from multiple insurers, if the storm trend continues, we could see homeowners rate increases in excess of 5% in areas such as Texas and Oklahoma,” Kerr warns. “Florida homeowners will also probably be hit with rate increases because of the assignment of benefits dilemma.”

Jacquelyn Connelly is IA senior editor.