SUNDAY, APRIL 10, 2022
2022 Insurance PRO TIP #11 (State of the Commercial Insurance Market and Rates update #1):
Coastal Select Insurance's 2nd QTR PRO TIPS will focus on Commercial and Business insurance rating projections to give our business owner followers a means to project and plan financially. If you're not a business owner, but plan on becoming one, this information would be valuable to start learning the insurance industry and how it could apply to your new venture.
Fleet and Business AUTO rates projections: Average rate increases of 7% to 20% are expected to continue. Higher new and used vehicle prices, along with the continued semiconductor shortage, are having a big impact on auto rates. Increases in auto pricing is also responsible for increases in umbrella excess pricing as well.
Commercial General Liability (CGL) rate projections: Rates are leveling off but still expect to see a 3% to 5% range increase and slightly higher for other higher risk business classes. Because of the increase in material costs and record breaking inflation, sales levels are increasing for clients which causes an increase in exposure basis (artificial in some cases, but sales volume typically drives premium in most CGL policies).
Source: Year End 2021 US Business Insurance State of the Market Report (South East sector specific).
Posted 7:19 AM
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|