Commercial insurance buyers in the United States were hit by interest rate hikes on every line of coverage and industry class during the third quarter, with executives and executives and umbrella responsible experiencing the biggest interest rate hikes, said online insurance exchange MarketScout Corp. 19659002] D&O interest rates increased by 11.5 percent, followed by umbrella and excess debt up 8.5 percent in a quarter where the average interest rate increase was 6.25%, MarketScout said in a statement. The average interest rate increase during the second quarter was 4.8%.
The level of employee compensation increased by 0.5% – the first increase that this industry has seen in over five years.
"We expect the fourth quarter of 2020 to reflect continued aggressive rate hikes in real estate, D&O and umbrella / surplus debt coverage," said MarketScout CEO Richard Kerr in the statement.
Commercial car interest rates increased by 8% during the third quarter, while occupational liability increased by 7.5% and commercial real estate prices increased by 7%.
All other lines showed smaller increases, according to Dallas-based MarketScout.
By industry class, transportation and housing saw the highest average increases in the quarter of 1
Large accounts, those with $ 250,001 to $ 1 million in premium, and medium-sized accounts, from $ 25,001 up to $ 250,000 in premium, saw the largest interest rate increases, an increase of 7%.