Moderation in premium increases continued in Q3, according to CIAB’s quarterly survey. Increases across all account sizes rose by 5.1%, staying about the same as Q2 2024’s 5.2%. This marks the 28th consecutive quarter of increases. Respondents pointed to carrier competition and changes in umbrella underwriting capacity as contributors to Q3.
Q3 Rate Changes Among Major Lines
Umbrella Surges, Bucking Overall Softening Trend
Umbrella premiums saw an average increase of 8.6% in Q3 2024, marking the highest rise among all insurance lines and continuing its upward trend. Respondents noted that social inflation, manifesting in extended litigation and nuclear verdicts, was a primary driver behind umbrella increases.
This rise in umbrella premiums contrasts with the overall softening market conditions, particularly evident in lines like D&O, which experienced a 1.9% decrease. Industry experts point to a sharp rise in both the severity and frequency of umbrella claims since 2020 as key factors contributing to this trend.
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 2024 (July 1 – September 30). Readers should contact legal counsel or an insurance professional for appropriate advice.
