July 8, 2013

Business Insurance

Commercial property/casualty insurance rates increased 5% on average for policies that renewed in June, according to a report issued by Dallas-based electronic insurance exchange MarketScout on Friday.

Commercial automobile coverage and workers compensation each experienced rate increases of 6%. Commercial property, general liability, directors and officers liability and employment practices liability insurance each posted increases of 5%. No line reported an increase of less than 2%.

Among industry classes tracked by MarketScout, contracting, service and transportation reported the largest increases at 6% each, while coverage for public entities reported the smallest increase at 2%.

Accounts of all sizes reported increases with the smallest accounts reporting the largest increases at 6% while the largest accounts reported increases of only 2%.

“The market is steady right now,” said MarketScout CEO Richard Kerr in a statement discussing the June results. “There were no big surprises in July 1 treaty renewals and even the impact of Superstorm Sandy seems to have been forgotten by most property insurers.”

Brokers who offer value-added services to their clients and prospects continue to expand their book of business and make higher commissions with the higher rates in the hardening market. We have helped many brokers and their clients with our workers compensation premium recovery service, and we have also recently added CompEdge to ensure that your clients have the lowest possible experience upon renewal. We make brokers look like heroes to their clients and prospects and pay commissions on top of that.