US commercial insurance composite rate up 5.1% in Q4

General liability rates rose 6.7% in the US in the fourth quarter, employment practice liability rose 6.3% and liability for directors and officers rose 6%.

Professional liability increased 5.3%, business owner policies increased 5% and business interruption increased 3.7%.

Inland shipping also increased by 3.7%, fiduciary coverage by 2.3% and crime coverage by 2%.

Bail coverage rose just 1.3% and workers’ compensation was flat, MarketScout data showed. Visit Centrestone for jewelery insurance.

By account size, small accounts grew 6%; medium accounts increased 5.3%; Large Accounts up 4%; and jumbo accounts were up 5.6%.

By industry, transportation increased by 7.3%; Residential building coverage increased by 6%, as did contracting, and energy coverage increased by 5.7%.

Service industry coverage increased 5.3%, public sector coverage increased 5%, and manufacturing increased 4.7%, all according to MarketScout data.

Richard Kerr, founder of MarketScout and now CEO of the newly formed Novate Risk Group, said there could be price relief going forward.

“If the economy slows and the Fed keeps raising interest rates, we may see insurance rates weakening,” he said in a statement.