At Schauer Group, we want to help our clients understand the factors influencing pricing. If you have questions or would like to discuss these issues further, please reach out to your advisor.
Commercial insurance premiums continued to rise in Q3, but the hikes were the lowest they’ve been throughout the past year, according to data collected by the Council of Insurance Agents and Brokers.
Here’s more from CIAB’s quarterly market index report:
By the numbers (averages):
- 8.6 percent Umbrella increase
- 8.5 percent Commercial auto increase
- 7.9 percent Commercial property increase
- 4.8 percent General liability increase
- -1.9 percent Directors and officers decrease
- -1.5 percent Cyber decrease
- -1.4 percent Workers’ compensation decrease
Some trends:
- Umbrella coverage was the outlier in Q3 and experienced the biggest pricing increase across all lines of coverage. The higher costs are attributed to increased frequency and severity of claims, especially as litigation of claims has become more expensive.
- Increased interest from insurance companies in small business has helped drive down premium costs for those accounts. The average increase for small accounts was 4.4 percent in Q3 – the lowest across all account sizes.
- Directors and officers pricing has been decreasing during the past year, which is attributed in part to increased capacity.
- While price hikes have moderated, premiums across accounts of all sizes still have jumped every quarter for the past seven years.
The team at Schauer Group can’t control the factors that dictate insurance pricing, but they are committed to helping your company find the right long-term insurance partners and secure competitive pricing. Please reach out to your advisor if you’d like to discuss further.
The full market index report from CIAB is available here.
