Large Accounts Hit With Rate Increases
Based upon the composite results of commercial business placed across the United States in March 2013, placing accounts that command large premiums no longer assures the buyer of a more aggressive pricing strategy.
Richard Kerr, CEO of MarketScout confirmed the results noting, “Historically, underwriters have been very aggressive in pricing name brand or large accounts. Other than the cache or bragging rights, there are few sound underwriting reasons for aggressively pricing large accounts. Risk is risk and exposure is exposure. In March, underwriters more frequently assessed an appropriate premium for large accounts.”
Workers’ compensation, professional and small commercial all received more aggressive month-over-month price increases.
Manufacturing continues to post the largest rate increases as compared to prior year results followed by contracting, service, habitational, and transportation.
A summary of the March 2013 rates by coverage, industry class and account size is set forth below.
By Industry Class | |
Manufacturing | Up 7% |
Contracting | Up 5% |
Service | Up 5% |
Habitational | Up 5% |
Public Entity | Up 4% |
Transportation | Up 5% |
Energy | Up 4% |
By Account Size | |
Small Accounts | Up 5% |
Up to $25,000 | |
Up 6% | |
$25,001 – $250,000 | |
Large Accounts | Up 5% |
$250,001 – $1 million | |
Jumbo Accounts | Up 5% |
Over $1 million | |
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