Commercial insurance interest rates continue to rise as the compound interest rate increase for the first quarter of 2022 was 6%, compared to 5.8% for the fourth quarter of 2021, according to the insurance exchange MarketScout Corp. on Tuesday.
Although prices in January and February were in line with the last quarter of 2021, prices began to rise even more in March 2022, “which may be the beginning of stronger increases in the coming quarters,” says Richard Kerr, CEO of MarketScout.
Aggressive interest rate hikes during the first quarter included 19.7% for cyber, 9.7% for umbrella and surplus, and 8.7% for board and civil servants’ responsibilities.
Commercial real estate increased by 7.6%, business interruptions by 6.3% and commercial cars by 7.3%.
Among smaller increases, compensation to workers increased by only 1% and crime and sureties were 1.3% each.
Interest rates for large accounts and jumbo accounts were stable, increasing by 6.7%, while interest rates for small and medium-sized accounts rose by 5.3% and 6.3%, respectively.
By industry class, transport led the increases up by 10.3%, then the residential areas increased by 8% and then decreased by 6%.
Founded in 2000, MarketScout is an insurance distribution and insurance company headquartered in Dallas. The company is a Lloyd’s coverholder and MGA for US insurance companies.