Premium increases remained steady with an average increase of 8.9% across all account sizes in Q2 2023. This is a slight increase from Q1’s 8.8%. According to The Council of Insurance Agents & Brokers Commercial Property/Casualty Market Index, Q2 2023 marks the 23rd consecutive quarter of increases.
Cyber Market Reports Increased Underwriting Capacity
While most lines of business experienced an increase similar to Q1, cyber experienced strong signs of relief. Cyber averaged an increase of only 3.6%, which is down significantly from 8.4% in Q1. Carriers have increased interest in placing new cyber policies allowing more pricing competition in the market.
Commercial Property Spikes Among Severe Weather
In contrast, commercial property premiums climbed by an average of 18.3% in Q2 2023. Natural catastrophes seem to be the driving force behind high premiums, high deductibles and reduced limits. Severe thunderstorms accounted for around $34 billion in losses in the U.S., the highest ever insured in a six-month period. $34 billion in losses is nearly twice as high as the average annual natural catastrophe losses of $18.4 billion.
Difficulties with reinsurance also compounded existing issues with this line.
Additional Market Trends
Workers’ Compensation recorded its’ 6th straight quarter of decreases, Q2 coming in at -0.7%. Commercial Auto reported an increase of 10.4%, marking the 50th straight quarter of premium increases.
For a consultative approach to navigating coverage and pricing changes within the insurance market, contact a UNICO Advisor.
For more information, download the full report below.
The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q1 2023 (April 1 – June 30). Readers should contact legal counsel or your UNICO Advisor for appropriate advice.
