Commercial rates saw an increase of 6.8% at third quarter of 2021, while personal lines saw average increases of 6.6%.
The composite rate for commercial insurance pricing rose to 6.8% in the third quarter of 2021, according to MarketScout. The increase marks a renewed acceleration of commercial lines rate increases after the second-quarter composite rate for commercial lines decreased to 5.9%, down from 7% in the first quarter.
“Umbrella and directors & officers coverages continue to lead the price increases at 11.7% and 11.3%," said Richard Kerr, CEO of MarketScout. “By industry group, transportation rates were most aggressive at 10.7 percent."
Property rates were up an average of 9%. However, in wildfire areas of California and the wind zones of Florida, rates were up over 20%.
Here's a rundown of all commercial lines increases across classes:
|Coverage Class||Percentage Change|
|Commercial property ||Up 9%|
|Business interruption||Up 6.7%|
|Business owners policy||Up 4.7%|
|Inland marine||Up 5.7%|
|General liability||Up 6%|
|Excess and umbrella||Up 11.7%|
|Commercial auto||Up 9%|
|Workers compensation||No change|
|Professional liability||Up 6.7%|
|Employment practices liability||Up 9%|
Meanwhile, the average rate increase for personal lines in the U.S. was 6.6% in the third quarter of 2021, compared to the increase of 4.75% in the second quarter.
“We always expect more aggressive homeowners pricing in the third quarter of any given year as insurers begin to incur losses from wind and wildfire claims," Kerr said.
The average homeowners rate increase is 4% for homes under $1 million in coverage A value and 7% for homes over $1 million.
“The national average rate increases for homeowners are not horrific. However, for those with homes in California and Florida, rates can be up as much as 25 percent," Kerr noted. “California homes $20 million and above with high wildfire exposures may not even be able to secure full coverage. Rate increases of 40% are not unusual."
MarketScout is a national managing general agent (MGA) and wholesale broker specializing in assisting agents in placing high net worth personal lines business.