Respondents reported an average increase among all lines of business of 8.1%, slightly down from 8.9% in Q2 and 8.8% in Q1. Trends continued among most major lines of business. According to The Council of Insurance Agents & Brokers Commercial Property/Casualty Market Index, Q3 2023 marks the 24th consecutive quarter of increases.
Notable Trends
Cyber lines reported an increase of only 1.6% this quarter. Workers’ compensation decreased for the seventh consecutive quarter, down -2.0%.
D&O Premiums Decrease, -0.3%, for First Time Since 2017
Since increases peaked in Q2 2020, D&O continues a downward trend of moderation. Common signs associated with soft markets were not apparent among other metrics. A small number of respondents, 16% indicated an increase in capacity and there was no changed in demand, 86%, from the previous quarter.
Possible reasons for softer D&O premiums include a reduced number of IPO filings from previous years and fewer securities class action lawsuits.
High Claims Frequency, Severity and Inflation Fuel Commercial Property Rise
Commercial property sees fourth consecutive quarter of increases over 15%, coming in at 17.1% in Q3. High reinsurance cost and lack of reinsurance capacity remain driving force behind increases according to respondents.
Atypical weather patterns resulting in natural catastrophes and inflation were also named as major contributors affecting rising commercial property premiums.
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 Q3 2023 (July 1 – September 30). Readers should contact legal counsel or an insurance professional for appropriate advice.
