Commercial Insurance Rates Rise Amid Hurricane Threats

In the third quarter, commercial insurance rates rose by 3.8%, showing a decrease from the 4.4% increase in the previous quarter. The impact of Hurricanes Helene and Milton is expected to affect rates in the fourth quarter, with Hurricane Milton potentially turning into a significant insured property catastrophe event, especially if it makes landfall in Florida. The CEO of Novatae Risk Group indicated that the storm's strength will be a critical factor in determining its impact.

Among various types of commercial insurance, commercial auto experienced the highest average rate increase at 7.3%, followed by a 5.7% rise in commercial property rates. Other categories saw moderate increases, with general liability and umbrella/excess liability up by 4.3%, while professional liability rates climbed by 3.3%. Notably, workers compensation rates remained unchanged during this period. The report demonstrates ongoing trends and challenges within the insurance industry as companies assess risks and adjust their pricing strategies accordingly.