industry | INSIGHT
Commercial Rates Up In First Quarter 2023 Steady, Moderate Rate Increases Continue
By MarketBarometer
The composite rate for commercial property and casualty rates increased in a deliberate, modest fashion in the first quarter of 2023 at plus 5%. The only coverages of notable change were general liability, down from plus 6.7% in Q4 2022 to plus 4.3% in Q1 2023 and EPLI, down from plus 6.3% to plus 3.7%. By account size, rates decreased for all sizes except those with premiums of $250,000 to $1,000,000 which were up in comparison to Q1 2022 from plus 4% to plus 4.7% in Q1 2023. Rates by industry group reported transportation as the only quarter over quarter rate increase, which was up from plus 7.3% in Q4 2022 to plus 8% in Q1 2023. “It’s not surprising to see rates holding steady in the first quarter,” says Richard Kerr, CEO of Novatae Risk Group. “We will get a better measure of overall composite rates for 2023 in the next two quarters.”
Personal Lines Rates Decrease Slightly US Composite Rate Down Slightly to Plus 5% in First Quarter of 2023 Across the US, rates for personal lines coverage moderated slightly. “The rating environment for personal lines is tracking with Q4 2022, which is to be expected,” says Richard Kerr, CEO of Novatae Risk Group. “The real action in personal lines comes during wind and wildfire season. However, even now, catastrophe exposed high value property owners are struggling to find coverage without experiencing significant rate increases and restriction of terms such as higher deductibles and reduced coverage.” Homeowners and personal articles insurance on a composite basis were down slightly in the first quarter of 2023. Automobile insurance rates are increasing at plus 6.3% for Q1 2023 versus plus 5% in Q4 2022. 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 first quarter 2023 personal lines rates is set forth below. Personal Lines
may 2023
Homeowners under $1,000,000 value
Up 5%
Homeowners over $1,000,000 value
Up 6%
Automobile
Up 6.3%
Personal Articles
Up 3.3% insight
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