Q4 of 2024 saw premiums across all account sizes rise by an average of 5.4%, a slight increase from the previous quarter’s 5.1%, according to CIAB’s quarterly survey. This marks the 29th consecutive quarter of increased premiums across all account sizes, indicating a persistent upward trend in the market.
A significant contributor to these trends was the continued rise in commercial auto premiums, which increased by 8.9% due to factors like driver shortages, rising repair costs, and fleet electrification challenges.
Navigating the Road of Rising Commercial Auto Premiums
The commercial auto insurance sector continues to face significant headwinds, as evidenced by the persistent premium increases over the past decade. The latest data reveals a substantial 8.9% rise in Q4 2024, marking the 54th consecutive quarter of increases.
According to the report, the trucking industry faced a shortage of 80,000 drivers by the end of 2024. This resulted in companies feeling the pressure to lower hiring standards, resulting in higher accident rates. Looking at historical data, we observe fluctuations in premium changes, with notable peaks reaching over 10% in recent years. Despite some periods of moderation, the overall trajectory remains upward, reflecting the industry’s response to the driver shortages, fleet electrification and the rising cost of claims.
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 (October 1 – December 31). Readers should contact legal counsel or an insurance professional for appropriate advice.
