November Rates Down 9%

The single digit premium reductions generated in October have held into November with overall composite rate reductions equaling 9%. According to Richard Kerr, Founder and CEO of MarketScout, “It appears there is a trend toward greater rate reductions for larger insureds. Accounts generating premium in excess of $250,000 received an average rate reduction of 10% while the smaller accounts were down 8%. Small Business Owner’s Policies, which appeared to be on a continuous rate reduction cycle, reversed course and were down 9% in November as compared to down 12% in October.”

Workers’ Compensation and D&O coverages had the least rate reduction at 5%. Commercial Property and General Liability were reduced the most; 11%.


A summary of rates for each coverage and industry class as well as by account size is available for each month. For October 2008, the rates were as follows.

By Coverage Class

Commercial Property

Down 11%

Business Interruption

Down 6%

BOP

Down 9%

Inland Marine

Down 7%

General Liability

Down 11%

Umbrella/Excess

Down 7%

Commercial Auto

Down 9%

Workers' Compensation

Down 5%

Professional Liability

Down 7%

D&O Liability

Down 5%

EPLI

Down 7%

Fiduciary

Down 7%

Crime

Down 7%

Surety

Down 5%

By Account Size

Small Accounts

Down 8%

Up to $25,000

Medium Accounts

Down 8%

$25,001 - $250,000

Large Accounts

Down 10%

$250,000 - $1,000,000

Jumbo Accounts

Down 10%

Over $1,000,000

By Industry Class

Manufacturing

Down 10%

Contracting

Down 8%

Service

Down 10%

Habitational

Down 8%

Public Entity

Down 7%

Transportation

Down 7%

Energy

Down 5%