Overall commercial property/casualty insurance premiums for the first quarter of 2024 increased slightly across all account sizes, averaging 7.7%.
According to the Insurance Agents & Brokers Association's first quarter market study, the average increase in the first quarter of 2023 was 7.7%, compared with 7% in the fourth quarter, marking the 26th consecutive quarter of increases, although there were signs of a slowdown in premium increases across individual lines of business.
Each line was at or below the previous quarter's level, with the exception of commercial auto, where premiums increased an average of 9.8% compared to 7.3% in the previous quarter.
Commercial real estate's average increase in the first quarter was 10.1%, lower than the previous quarter and much lower than the average increase of 20.4% in the first quarter of 2023, but still the highest increase among all lines of insurance. CIAB said respondents still found commercial real estate difficult to place as a risk due to more stringent underwriting, rising property values and detailed filings.
D&O premiums fell an average of 0.8% in the first quarter of 2024, making it one of only two lines to post a decline in premiums. Workers' compensation continued its recent trend, with premiums declining 1.8% in the first quarter.
CIAB cited research from ratings agency AM Best, which in March downgraded its outlook for the U.S. D&O liability insurance sector to negative, noting that increased capacity from new market entrants has led to falling premiums amid concerns about risk exposure. Broker WTW said in its recent Marketplace Realities report that D&O premiums are trending flat to declining, a trend it expects to continue in 2024.
Respondents largely reported increases in commercial auto, cyber, general liability, employment practices liability and umbrella claims, while more respondents said they had seen increased demand for commercial property, commercial auto, umbrella and D&O.
Topics Trends Commercial Lines Price Trends General Insurance
Was this article worthwhile?
Yes, No
There are many other interesting articles:
Interested in commercial lines?
Get automated alerts on this topic.
