What’s occurring with P&C charges within the US? – Report
Property and casualty rates rose in the fourth quarter of 2021, according to a report from insurance distribution and insurance company MarketScout.
The composite rate for the fourth quarter rose 5.8% after rising 6.8% in the third quarter, MarketScout reported.
By insurance, the largest rate increases in the fourth quarter were in umbrella, property, and director and officer’s liability insurance. However, every line of insurance except business owner policies saw the same or less increase in the fourth quarter compared to the third quarter.
The prices for medium-sized accounts were moderated ($ 25,000 premium to $ 250,000 premium), up + 5.3% in the fourth quarter compared to + 7.3% in the third quarter, MarketScout reported.
Next read: Compound tariffs for commercial and residential lines are increasing
All industry classifications saw lower rate increases in the fourth quarter, with housing rates decelerating the most, up 7%, compared with a 9% increase in the third quarter.
“The fourth quarter of 2021 reflects moderate rate increases,” said MarketScout CEO Richard Kerr. “When comparing the rates for the whole of 2021, however, the rates rose from +5.6% in 2020 to +6.6% in 2021.”