MarketScout & Insurance Rate Increases — Still Rising

As you know, MarketScout tracks insurance rates on a quarterly basis. Company CEO, Richard Kerr says the second quarter of 2022 is looking about the same as the first. The composite average across all lines of insurance is 5.9%.

In quarter one it was 6% and that followed a 5.8% jump in the last quarter of 2021.

Kerr said the rate hikes are just beginning and he predicts more, higher rates in the future. “Inflation can create a need for rate increases, so we may see that impact over the next four quarters,” Kerr said. “As for rate decreases, it’s possible higher interest rates could provide insurers with additional investment income which could moderate rate decreases, especially on long tail business.”

Leading the pack for price jumps is cyber liability. Rates rose an average of 21.3% in the second quarter. That’s up from the 19.7% spike in the first quarter of 2022.

Excess/umbrella’s rates rose 8.7%, D&O jumped 8.3% and commercial property rates were up 8.3% as well. Medium-sized accounts saw the most increases at 7%.

Source: Insurance Journal

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