NEWS RELEASE – FOR IMMEDIATE RELEASE
HARD MARKET COMMERCIAL P/C RATE TRENDS CONTINUE IN FIRST QUARTER OF 2001
WASHINGTON, D.C., May 3, 2001 – The Council’s Commercial P/C Market Index for first quarter 2001, released today, shows rate increases in the commercial property/casualty market continued to rise at the pace set in the final quarter of 2000. In addition, some brokers responding to the survey reported major price increases of 30 percent or more for difficult-to-place coverage, such as those for construction, trucking, and nursing home businesses.
The Index is based on a quarterly survey of The Council’s member firms, who represent the top one percent of agents and brokers in the United States, and who place over 80 percent of all commercial insurance premiums.
Across lines, medium sized accounts ($25K - $100K commission and fees) saw the largest rate increases. Seventy-six percent of the brokers surveyed said prices for medium sized accounts rose 10 – 30 percent between January 1 and April 1. Prices for small (those under $25K) and large (those over $100K) accounts also rose significantly over last quarter. There were few rate increases over 30 percent for either small, medium, or large accounts.
Brokers reported increases for auto, worker’s compensation, property, general liability and umbrella coverages. Close to 90 percent of responding brokers said rates for the five commercial lines were “somewhat hard” or “very hard.” Rates for general liability and umbrella business took a significant jump up compared to their performance last quarter.
The Index shows group medical rates are on the rise as well. Sixty-four percent of respondents said rates for small group medical accounts rose 10-30 percent; 57 percent reported similar increases for medium accounts; and 48 percent saw increases for large accounts. A small number reported increases over 30 percent for all accounts.
Overall, the upwards pricing trends for commercial p/c business and group medical, which was revealed by The Council’s Commercial Insurance Market Index in late 1999, continues.
Through its quarterly survey, The Council documents trends in property-casualty rates throughout the U.S. and by region. The first quarter 2001 survey, covering the period from January 1 – April 1, 2001 was sent to 250 Council member firms throughout the U.S. The results are based on 112 responses from all regions.
Click here for complete survey results.
The Council of Insurance Agents & Brokers is the premier association for the top national, regional and international commercial brokerage firms and agencies in the United States and around the world. Member firms have offices in more than 3,000 locations across 100 countries. Council members place more than $200 billion in commercial property/casualty and employee benefits premium worldwide. More than 16 percent of the membership is comprised of firms headquartered outside the United States. Founded in 1913, The Council is based in Washington, D.C.