At Schauer Group, we want to help our clients understand market conditions and the factors contributing to premium pricing. Please reach out to us if you have questions or would like to discuss these issues.
High premiums remain a top concern for commercial insurance clients nationwide as pricing continues to increase.
Commercial insurance premiums rose for the 24th consecutive quarter during Q3 2023, with commercial property rates once again driving the increase, according to The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report for Q3 2023.
Overall, the nationwide average commercial premium increase in the third quarter was 8.1 percent. Commercial property increases, however, continue to outpace other lines, with the average Q3 increase hitting 17.1 percent. Those hikes largely are driven by both the high cost of reinsurance – which is passed on to insurance companies – and lack of reinsurance capacity. Losses from natural catastrophes and inflation also are playing a role.
Unsurprisingly, years of rate increases are leaving clients feeling fatigued. The report states the largest concerns among commercial insurance clients in Q3 were future premium increases and their current insurance pricing, followed by worries about coverage limitations.
Among other lines of insurance coverage, there is one bright spot – directors and officers liability rates decreased (by just .3 percent) for the first time since 2017. The reason for the decrease appears to be two-fold – the result of declining claim frequency from 2019-2020 peaks and additional capacity, according to other industry reports.
While the advisors at Schauer Group can’t control market conditions, they can help your business find the best commercial insurance coverage at the best price. To discuss further, please reach out to our team.
To learn more, read the full report from The Council.
