The composite rate for the second quarter 2021 was 5.9 percent versus 7 percent in the first quarter. Commercial insurance buyers paying $25,000 or less in premium are paying a slightly lower rate at 5 percent versus 6.3 percent in the first quarter.
As measured by line of coverage, professional lines rates adjusted significantly at an increase of just 4.3 percent versus 11.3 percent last quarter.
There were other slight adjustments in rates as measured by industry group, coverage classification and account size.
Property, auto, business interruption, general liability, EPLI, crime and public entity had rate increases from Q1 to Q2 but the overall composite rate index was down.
Richard Kerr, CEO of MarketScout profiled the market results by explaining, “We monitor trends. This quarter there was a slight trend towards rate moderation, but this could be an aberration. Let’s see how the rest of the year plays out before we make any predictions about market rates moderating.” Kerr also noted, “We are now entering hurricane season and this fall we will be in wildfire season. Property rates continue to rise and could get even higher.”