At Schauer Group, we want to help our clients understand the factors influencing market conditions. Please reach out to us if you have questions or would like to discuss these issues.
In the first months of 2024, commercial property and casualty insurance pricing looked a lot like pricing at the end of 2023.
While premiums still are rising, the average increases across all lines of business generally stayed about the same or decreased slightly in Q1 2024 compared with Q4 2023, according to a quarterly market index report from The Council of Insurance Agents and Brokers.
Commercial auto premiums, however, were an outlier in Q1, as average premium increases jumped from 7.3 percent to 9.8 percent. The factors thought to be driving those hikes include:
- Increased vehicle repair costs, especially as vehicles become more high-tech
- Hiring problems – as companies struggle to attract and retain truck drivers, they’re forced to put less-experienced truck drivers on the roads, which leads to more accidents.
- The prevalence of nuclear verdicts (those where the verdict tops $10 million)
One bright spot in premium pricing is directors and officers liability, which saw premiums drop by an average of nearly 1 percent – in part the result of less litigation, fewer mergers and acquisitions, and fewer initial public offerings.
More key numbers from the Q1 market index report:
- 7.7 percent Average commercial premium increase across all accounts
- 8.5 percent Average commercial premium increase for medium-sized accounts
- 10.1 percent Average commercial property premium increase
- 42 percent Brokers who saw cyber claims increase in Q1
- 63 percent Brokers who saw commercial auto claims increase in Q1
The team at Schauer Group monitors market conditions and works hard to secure coverage with a long-term partner at a competitive price. To discuss further, please reach out to your Schauer Group advisor.
Read the full report from The Council of Insurance Agents and Brokers here.
