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For the 24th consecutive quarter, insurance premiums rose by an average of 8.1%. One exception was Directors & Officers (D&O) insurance, which saw average prices drop, according to the newest CIAB survey.
By the numbers: Commercial property premiums continued a stratospheric climb, averaging 17.1%. That marked the highest increase in premium prices among all lines for the fourth successive quarter.
- High reinsurance prices and capacity continued to affect commercial property insurance. Additionally, losses from natural disasters were the other major factor impacting the line.
Commercial auto insurance saw the next high price spike, as premiums jumped an average of 8.8%.
Good news for buyers: D&O premiums decreased an average of -0.3% in Q3 for the first time in seven years. The unexpected result hints at softer market conditions.
- Workers’ compensation insurance notched its seventh consecutive quarter of premium decreases at -2.0%.
- And cyber insurance recorded an increase of only 1.6% in Q3. The latest quarterly reports suggest moderating premium increases.
Policyholder concerns: The CIAB survey found that the current market conditions are taking a toll on buyers. Seven in ten respondents reported that their clients are rate fatigued.
More concerning for agents and brokers was that 42% of respondents mentioned that their clients displayed some mistrust toward the insurance industry. “Many clients, especially those with no losses, expressed frustration with the system,” said one respondent from a Midwestern firm.
What we’re watching: As we head into 2024, insurance buyers should generally expect to see higher premiums. WTW predicted rising premiums for many insurance lines in their 2024 Marketplace Realities report.
Go Deeper: Dig into the Q3 2013 data from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report.
