Already in 2023, there have been more extreme events in America that cost at least $1 billion, exceeding the 2020 record. Catastrophes, the mounting costs of building materials and four other driving forces are increasing the cost of property insurance.
Factors such as high interest rates, increased settlements and severe weather events have taken a toll on the insurance market resulting in a "hard market."
Most lines experienced moderation in premium pricing increases in Q1 2023. Results from the survey showed an average increase of 8.8% across all account sizes, up slightly from the 8.0% recorded the previous quarter.
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.
Premiums continued to increase in the first quarter of 2022, according to results from CIAB’s Commercial Property/Casualty Market Index. However, there were signs that market conditions may have eased slightly this quarter.