According to multiple insurance market studies, commercial property rates for both renewal and new business have increased over 12% year to date in the United States. Higher legal expenses and a more socially conscious public are contributing factors to the rising rates as insurance carriers pursue a more disciplined approach to underwriting to remain profitable.
“What can we do to ease the pain of this for our customers?” asked Caroline Raneri, Vice President of Sales and Agency Relations at Millers Mutual Insurance. “Experience has taught us to educate our customers. Contact customers well in advance of their renewal. The specifics are not as important as the overall understanding of what is happening in the industry and what to expect at renewal.”
Commercial property/casualty rate increases are expected to continue through 2020.