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Insurance premiums are still rising as Q2 2023 marked the 23rd consecutive quarter of premium increases, the CIAB reported.
Why it Matters: The hard insurance market cycle is going strong. Insurance buyers are paying more in premiums and facing stricter coverage terms and less competition for their business from insurance carriers.
By the Numbers: Commercial property insurance stood out in a bad way. The coverage saw the highest reported increase at 18.3%.
- Wild weather impacted the property insurance market. Swiss Re reported that severe thunderstorms in the U.S. cost insurers $34 billion during the first half of 2023.
Elsewhere, commercial auto surged 10.4%. That marks 50 consecutive quarters of premium increases for auto insurance.
Sweet Relief: Cyber insurance premiums rose by an average of just 3.6% in Q2 2023. That’s way down from the double-digit premium increases buyers saw just a few quarters ago.
- And Workers’ compensation insurance dropped for the sixth consecutive quarter, as prices slipped -0.7%.
What’s Next: Higher premiums and continued rate increases remain top of mind for buyers. Some survey respondents reported that clients are “rate fatigued.” That leads to them purchasing lower limits or accepting higher deductibles to keep premiums down.
Go Deeper: Dig into the data from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report for Q2 2023.
