Workers' compensation, Kerr says, remains a tough class, with several major carriers exiting the market recently and others cutting back their business in this line. “We expect workers' compensation insurers to hold steady with small rate increases continuing,” he says.

EPLI, workers' comp and commercial auto led the way for April rate increases at 3%. No line showed rate decreases, but business interruption, inland marine, fiduciary, crime and surety were all up by just 1%.

In March, small, medium and large accounts were all up by 3% while jumbo accounts increased by 1%. In April, only small accounts remained at plus-3%. Medium accounts were up by 2% and large and jumbo accounts were both up by 1%.

Personal lines

Meanwhile, personal-lines rates held steady at 3% in April. Homeowners rates—for homes valued both over and under $1 million—and auto rates were unchanged in March at plus-3%, while personal articles rates were unchanged at plus-2%.

Kerr says, “Spread of risk is extremely important for personal lines insurers. Those that are heavily burdened with catastrophe-exposed business are taking a big chance. We are noting insurers are actually requiring a balanced book if agents want to access their cat capacity. This is good news for those agents with widespread operations because they can offer an insurer business in the central US to balance their cat-exposed book. Those who are, for instance, only in Florida, will find themselves getting paid less commission and having access to less capacity.”

PropertyCasualty360