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MarketScout: P/C Rates Decline in 2016

MarketScout: P/C Rates Decline in 2016
January 11, 2017

MarketScout recently reported that U.S. commercial insurance pricing was consistently down in 2016, with December closing out the year at a composite rate reduction of 1 percent.

The year began with a composite rate decrease of 4 percent, moderated slightly beginning in April, and continued a steady pattern of monthly rate reductions of 1 percent to 2 percent, said MarketScout. The market has been soft for 16 months, after a flat composite rate in 2015 or plus 1 percent for the first eight months before slipping into negative territory.

By coverage classification, commercial property moderated in December from down 3 percent to down 2 percent, while workers’ compensation rates decreased from down 1 percent to down 2 percent. Employment practices liability insurance and crime rates were the only coverages with rate increases, rising 1 percent to 2 percent. Small accounts were flat in December, while medium-size accounts up to $250,000 were down 1 percent. Large accounts up to $1 million were down 2 percent, and jumbo accounts greater than $1 million declined 2 percent in December.

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