Rates for US commercial lines increased 3% last month, with analyst MarketScout blaming additional capacity, insurance-linked securities and a more stable economy for the moderate pricing environment.

Personal lines rates fell to 2% from 3% in December, indicating the market is flat.

MarketScout CEO Richard Kerr says rates for five commercial classes have fallen 1% on a year ago. “No coverage classifications had a rate increase [on the previous year].”

Commercial property, professional liability, directors’ and officers’ cover and business interruption all grew 2% last month, and commercial auto and workers’ compensation were up 4%.

Mr Kerr expects continued aggressive pricing in personal lines. “Coastal homeowners continue to enjoy competitive rates because of the lack of windstorm activity in 2013, despite Superstorm Sandy.”