The composite rate for U.S. commercial insurance increased 5.1% in the fourth quarter of 2022, according to a report on Friday from MarketScout Corp.
On an annualized basis, the compound rate for 2022 is 5.7%, making last year the sixth consecutive year of increases in commercial insurance, MarketScout said.
By coverage line, rate increases for the fourth quarter were 9.3% for commercial property, 7.7% for excess and umbrella coverage, and 7% for commercial auto.
General liability increased 6.7% in the fourth quarter, employment practices liability increased 6.3%, and directors and officers liability increased 6%. I
Professional liability increased by 5.3%, corporate policy increased by 5%, and business interruption increased by 3.7%.
Inland marine also increased by 3.7%, trust coverage increased by 2.3% and crime increased by 2%.
Insurance coverage rose just 1.3% and worker’s compensation was flat, MarketScout data showed.
By account size, small accounts increased 6%, medium accounts increased 5.3%, large accounts increased 4%, and jumbo accounts increased 5.6%.
By industry class, shipments increased by 7.3%; housing coverage increased by 6%, as did contracting; and energy coverage increased by 5.7%.
Services industry coverage increased 5.3%, public sector coverage increased 5% and manufacturing 4.7%, all according to MarketScout data.
Richard Kerr, founder of MarketScout and now CEO of newly formed Novatae Risk Group, said there could be price relief ahead. “If there is a slowdown in the economy and/or the Fed continues to raise interest rates, we may well see moderate insurance rates,” he said in a statement.