The second quarter of 2022 marked the 19th consecutive quarter of commercial price increases, with continued easing in the market and average price increases of 6.1% across all lines of business.
Signs of pricing moderation emerged for some lines of business, like flood, medical malpractice and surety bonds. Others—like cyber and umbrella—continued to experience upward pressure on premiums, though not as pronounced as in past quarters. There was little change from the first quarter when prices rose an average of 5.7%.
Cyber pricing continued to lead all lines, with an increase of 26.8% in the second quarter of 2022 compared to 27.5% in the year’s first quarter and 34.3% in the fourth quarter of 2021. Pricing conditions for the line continued to pose problems for brokers and was deemed “a full-fledged hard market.”
Umbrella liability price increases averaged 11.3%, followed by property at 8.3%, directors and officers liability at 7.9% and commercial auto at 7.2%.
Inflation also affecting commercial auto
For commercial auto, the staggering 44 consecutive quarters of premium increases marched on.
The availability of auto parts, new and used cars, and limited rental coverage create concern about the availability of coverage to make businesses whole after a loss.