At the close of the third quarter 2020, insurance buyers were assessed rate increases on every line of coverage and industry class.
Richard Kerr, CEO and Founder of MarketScout, profiled the current market environment by pointing out, “The composite rate is up 6.25 percent for the third quarter 2020 as compared to up 4.8 percent in the second quarter. Rates began adjusting upward at a quicker pace in September. We expect the fourth quarter 2020 will reflect continued aggressive rate increases in property, D&O and umbrella/excess liability coverages.”
D&O rates were up the most at plus 11.5 percent followed by umbrella and excess liability which registered an increase of 8.5 percent. For the first time in over five years, workers’ compensation rates were up, albeit only .5 percent but they were up.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
A summary of the third quarter 2020 rates by coverage, industry class and account size is set forth below.
|
By Coverage Class |
|
|
Commercial Property |
Up 7% |
|
Business Interruption |
Up 5.5% |
|
BOP |
Up 5% |
|
Inland Marine |
Up 5% |
|
General Liability |
Up 5.5% |