Annual Composite Rate Increases Continue for Fifth Year in a Row
The fourth quarter 2021 composite rate was up 5.8 percent as compared to up 6.8 percent for the third quarter 2021.
By line of coverage, the biggest rate increases in the fourth quarter were for umbrella, property and directors and officers liability. However, every line of coverage except BOP had the same or a lower increase in the fourth quarter as compared to the preceding third quarter.
Rates moderated for all account sizes with medium sized accounts ($25,000 premium $250,000 premium) moderating the most at plus 5.3 percent in the fourth quarter as compared to plus 7.3 percent in the third quarter.
All industry classifications were assessed lower rate increases in the fourth quarter with habitational rates moderating the most at an increase of 7 percent as compared to plus 9 percent in the third quarter 2021.
Richard Kerr, CEO of MarketScout noted, “The fourth quarter 2021 reflects moderation in rate increases. However, when comparing rates for the entirety of 2021, rates did increase from plus 5.6 percent in 2020 to plus 6.6 percent in 2021.”
The following graphic reflects rate changes in US commercial insurance for the last 20 years.
A summary of the fourth quarter 2021 rates by coverage, industry class and account size is set forth below.
| By Coverage Class | |
| Commercial Property | Up 8.3% |
| Business Interruption | Up 6% |
| BOP | Up 5.3% |
| Inland Marine | Up 4.3% |
| General Liability | Up 5.3% |
| Umbrella/Excess | Up 11% |
| Commercial Auto | Up 6.7% |
| Workers’ Compensation | Up 0% |
| Professional Liability | Up 6.3% |
| D&O Liability | Up 10.3% |
| EPLI | Up 8% |
| Fiduciary | Up 1.7% |
| Crime | Up 1.3% |
| Surety | Up 1.3% |
