July 5, 2012 – Business Insurance

The composite rate for commercial property/casualty and professional lines coverage increased an average of 4% in June 2012 compared with the same month a year ago, MarketScout said Thursday.

According to the Dallas-based electronic insurance exchange, prices for commercial property rose 5%, while general liability, commercial auto and workers compensation coverage each rose 4%.

By account size, the biggest increases were concentrated at the bottom with small accounts up to $25,000 and midsize accounts up to $250,000 each seeing increases of 4%. Conversely, jumbo accounts over $1 million saw prices rise 1%.

MarketScout CEO Richard Kerr said rates for workers compensation were indicative of the “bumpy” nature of the market.

“We did record rate moderation for workers compensation accounts from plus 5% in May to plus 4% in June,” Mr. Kerr said in a statement. “Accounts with class codes related to high hazard exposures are being assessed considerable rate increases of plus 7% to plus 15%. Traditional ‘main street’ workers compensation accounts are renewing as expiring to plus 2%.”

Workers compensation audit is the best solution for brokers to renew their clients in this hardening market.