Broker Marsh said headline rate developments at renewal for U.S. commercial insurance lines will rise 3% in the fourth quarter of 2023, mainly due to an 11% increase in property rates.
U.S. commercial property insurance premiums rose for the 25th consecutive quarter, matching the record for consecutive quarterly gains in commercial insurance globally (up 2%), according to the Marsh Global Insurance Market Index.
The fourth-quarter U.S. property tax rate increase of 11% was in line with the fourth quarter of 2022 but lower than the 17%, 19% and 14% increases seen in the past three quarters of 2023.
Marsh said that as underwriters scrutinize catastrophe deductibles and limit non-physical, cyber and epidemic coverage, clients are taking on more risk by increasing deductibles or using captive, parametric or structured solutions. “Risks with limited exposure to natural catastrophes and stable existing capacity have generally performed better than risks with losses or asset concentrations in disaster hazard zones such as the Gulf of Mexico, the Atlantic Coast and California,” Marsh reported.
US financial and professional insurance premiums fell for the sixth consecutive quarter (-6%), driven by an 8% decline in public company directors and officers liability insurance. Financial institutions premiums fell 5%, and cyber premiums fell 4% despite an increase in the frequency and severity of ransomware attacks.
“There was ample capacity, particularly for surplus programs, and general managing agents (MGAs) continued to bring new capacity to the market,” Marsh said in a report on U.S. cyber insurance.
The U.S. property and casualty insurance market remains competitive, particularly in workers' compensation, with premium rates increasing 3% in the fourth quarter compared to 2% in the previous quarter and 1% in Q4 2022.
Topics Trends United States Commercial Lines Business Insurance Pricing Trends
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