Commercial lines in the US recorded rate rises of 1-5% in the first quarter, according to insurance analyst MarketScout.

Workers’ compensation is the only exception, showing a 2% decline.

The composite rate for all property and casualty lines is at plus 2% on the market barometer.

“Automobile and transportation exposures continued to experience the greatest rate increases due to increasing expenses and adverse claim development,” MarketScout CEO Richard Kerr said. “Insurers are struggling with this segment of our industry.”

He says a major issue facing insurers is the impact of autonomous vehicles, which is already beginning to alter the industry’s risk-modelling approach.

“The questionable future of auto insurance could be impacting insurers’ willingness to invest in new safety concepts, pricing models and distribution alternatives.

“Many tech firms are working hard to deploy new insurance alternatives, which reflect the lower claims frequency/severity anticipated by driverless or driver-assisted trucking exposures. Traditional auto insurer opportunities will shrink unless they adapt their business model to get in the middle of the autonomous vehicle parade.”

In the personal lines market, the composite rate was at plus 3% on the barometer.