According to recent analysis from MarketScout, in 2023, the transportation industry was assessed as the sector with the largest rate increase at plus 7.26%, as the total rate increase across all industry groups hit 4.56% in the year.
By coverage classification, property and auto rates were up the most in 2023, at plus 9.33% and 7.33%, respectively. Although many states saw rate decreases in workers’ compensation, there was a flat with no rate adjustment on average, says MarketScout.
MarketScout reports that in Q4 2023 rates increased to 5.6%, compared with Q3 2023’s increase of 3.72%.
The United States commercial insurance buyer paid a slightly lower premium on average in 2023 versus 2022, says MarketScout.
Richard Kerr, Chief Executive Officer, Novatae Risk Group, commented, “Calendar year 2023 settled down a bit as compared to the last few years. Property insurers are still cautious, but they are optimistic 2024 could yield good returns, especially with the rate increases of the last several years. Throughout 2023, liability insurers assessed sensible rate increases.”
By coverage class, MarketScout reports that commercial property saw an increase of 8.3%, while business interruption increased by 6% and BOP by 5%.
The Inland Marine segment saw an increase of 4.3%, while General Liability was up by 5.3%, and Umbrella/Excess saw a rate increase of 6.7%.
Additionally, there was an increase of 7% increase in Commercial Auto, Professional Liability increased by 4.7%, and D&O Liability was increased by 2.7% .
EPLI rates were up by 1.3%, Fiduciary increased by 1%, and Crime was up by 1.3%, with Surety staying flat.