Commercial insurance rate increases moderate in third quarter

Commercial insurance rates increased 3.8% in the third quarter, down from 4.4% in the second quarter, but Hurricanes Helene and Milton are expected to impact rates in the fourth quarter, MarketScout Corp. said in a report Tuesday.

Hurricane Milton could become “one of the most significant insured property catastrophe events in recent years,” depending on its strength and where it makes landfall in Florida, Richard Kerr, CEO of Novatae Risk Group, which owns MarketScout, said in a statement.

Commercial auto saw the highest average rate increase in the third quarter, rising by 7.3%, compared with an 8% increase in the second quarter.

Commercial property rates rose 5.7%, compared with 7% in the second quarter; general liability and umbrella/excess liability were up 4.3%, compared with 4.7%.

Professional liability rates were up 3.3%, compared with 3.7%; directors and officers liability rates also rose 3.3%, unchanged from the second quarter.

Workers compensation rates remained flat.