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Commercial rates post steady gains

US commercial insurance rates increased 3% last month, compared with a 2% gain in February, extending a pattern of slow but steady increases, according to analyst MarketScout.

“Despite improving margins, insurers are still not meeting their profit targets, thus the continued marginal increases,” CEO Richard Kerr said.

Accounts with premiums from $US25,000 to $US1 million ($26,558 to $1.06 million) paid a 3% increase, while rates for “jumbo accounts” grew 1%.

By sector, energy account gains lagged the market, with a 2% rise.

Personal line rates also increased 3% last month, compared with a 2% rise in February, leading to an aggregate gain of 9% in the past two years.

“We are seeing the premium increases moderate and expect that trend to continue unless insurers are hit with a large catastrophic weather event later in the year,” Mr Kerr said.

Gains last month were consistent for automobile and homeowners’ insurance, while personal articles cover increased 2%.