Survey: Workers' comp market follows bumpy path

Workers' comp insurers are trying to "settle in at appropriate pricing," said Richard Kerr, CEO of MarketScout, after the company's release of the latest commercial rates.

Where workers' comp rates were up an average 5 percent in May, they increased by just 4 percent in June. Kerr commented on the rate moderation noted for June.

"Accounts with class codes related to high-hazard exposures are being assessed considerable rate increases of plus 7 percent to plus 15 percent," he said. "Traditional 'main street' workers' compensation accounts are renewing as expiring to plus 2 percent."

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Overall, the composition rate for property and casualty placements held steady at plus 4 percent in June. The rates by coverage classes included:

Commercial property -- up 5 percent.
Business interruption -- up 2 percent.
Business owner policies -- up 4 percent.
General liability -- up 4 percent.
Umbrella/excess -- up 3 percent.
Commercial auto -- up 4 percent.
Professional liability -- up 1 percent.
D&O liability -- up 2 percent.
Employment practices liability insurance -- up 2 percent.

The National Alliance for Insurance Education and Research conducted pricing surveys used in the analysis of market conditions. The surveys help to "further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States," according to the June barometer.

Read more at the WorkersComp Forum homepage.

August 9, 2012

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