The composite rate for U.S. commercial insurance was up 5.1% in the fourth quarter of 2022, according to a report Friday from MarketScout Corp.
On an annualized basis, the composite rate for 2022 is 5.7%, making last year the sixth straight year of commercial insurance rate increases, MarketScout said.
By coverage line, fourth-quarter rate increases came in at 9.3% for commercial property, 7.7% for excess and umbrella cover, and 7% for commercial auto.
General liability rates rose 6.7% in the fourth quarter, employment practices liability insurance rose 6.3%, and directors and officers liability was up 6%. I
Professional liability was up 5.3%, business owners policy up 5% and business interruption was up 3.7%.
Inland marine was also up 3.7%, fiduciary cover was up 2.3% and crime coverage rose 2%.
Surety coverage was up just 1.3% and workers compensation was flat, MarketScout data showed.
By account size, small accounts were up 6%, medium accounts rose 5.3%, large accounts were up 4% and jumbo accounts rose 5.6%.
By industry class, transportation was up 7.3%; habitational coverage rose 6%, as did contracting; and energy cover was up 5.7%.
Service industry cover went up 5.3%, public entity coverage was up 5% and manufacturing 4.7%, all according to MarketScout data.
Richard Kerr, founder of MarketScout and now CEO of newly formed Novatae Risk Group, said there could be pricing relief going forward. “If there is a slowdown in the economy and/or the Fed continues to increase interest rates, we may well see moderation in insurance rates,” he said in a statement.