Commercial Rates Up In First Quarter 2023

Steady, Moderate Rate Increases Continue

The composite rate for commercial property and casualty rates increased in a deliberate, modest fashion in the first quarter of 2023 at plus 5%.

The only coverages of notable change were general liability, down from plus 6.7% in Q4 2022 to plus 4.3% in Q1 2023 and EPLI, down from plus 6.3% to plus 3.7%.

By account size, rates decreased for all sizes except those with premiums of $250,000 to $1,000,000 which were up in comparison to Q1 2022 from plus 4% to plus 4.7% in Q1 2023.

Rates by industry group reported transportation as the only quarter over quarter rate increase, which was up from plus 7.3% in Q4 2022 to plus 8% in Q1 2023.

“It’s not surprising to see rates holding steady in the first quarter,” says Richard Kerr, CEO of Novatae Risk Group. “We will get a better measure of overall composite rates for 2023 in the next two quarters.”