P-C Rates Dip Again in October

Between September and October, average commercial and personal lines insurance rates moderated a percentage point each, to -2% and +1%, respectively, according to the latest MarketScout pricing survey.

After holding steady at -1% for four months in a row, the commercial lines composite dropped in October thanks in large part to rate decreases in commercial property and general liability. Pricing for both classes averaged flat in September, but dropped to -2% in October. Average rates for business owner policies also fell from flat to -1%.

“The composite rate includes all lines of commercial business,” explains Richard Kerr, MarketScout CEO. “Insureds and brokers should carefully examine the rates for coverage and/or industry classifications that are germane to their placements.”

After clocking a +2% composite in September, the personal lines market experienced similar rate reductions in October. While personal auto rates held steady at +2% and pricing for personal articles increased to +1% from flat, pricing for all homeowners insurance inched back down to +1% in October from +2% in September.

“Hurricane season is over,” Kerr points out. “Hurricane Matthew was a scare, but the net effect to insurers was minimal. With another year of relatively benign wind events, insurers are quoting more competitive rates.”

Jacquelyn Connelly is IA senior editor.