Commercial rates in the US market stood at +3.72% in the third quarter compared with +5% in the preceding three-month period, MarketScout says. 

Rates for all coverage classifications except business owners’ policies (BOP) moderated in the third quarter. BOP rates increased from +3.2% to + 5%. 

“Reinsurers have been tough on insurance company partners the last 24 months. We see their stance moderating,” Novatae Risk Group CEO Richard Kerr said. Novatae, a wholesale insurance broker, acquired MarketScout last year. 

“The enhanced terms are being passed along to insurers and their customers. Higher interest rates also help support reinsurers’ results, so that could be a part of the reason for moderating rates as well.” 

By coverage class commercial property went up 9%, business interruption 5%, commercial auto 7%, professional liability 3.3%, directors’ and officers’ liability 3% and workers’ compensation stayed flat. 

In the personal lines space the composite rate was +4% in the third quarter. All homes, regardless of value, enjoyed moderate increases, as did automobile and personal article floaters. 

“Insurers are feeling better about their results in the personal lines space, resulting in lower rate increases. However, the hottest summer on record does create concern for the future,” Mr Kerr said. 

For homeowners under $US1 million ($1.6 million) rates gained 3.7% and for more than $US1 million prices rose 5.3%.