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The end of 2024 came with no real change in insurance market conditions, the latest Council of Insurance Agents & Brokers (CIAB) survey found.
Commercial property/casualty (P/C) premiums across all account sizes continued to climb at an average of 5.4%. That’s similar to Q3’s 5.1% and Q2’s 5.2% increases.
By the Q4 numbers:
- 29: number of consecutive quarters of increased premiums across all account sizes
- 8.9%: average commercial auto increase, highest among all lines
- 1.9%: average increase for medical malpractice
- -1.8%: average cyber decrease—and record low for the line
- Directors’ and officers’, employment practices, and workers’ compensation also saw modest premium decreases
Reinsurance Pricing Relief?
In a new report, Howden Group says the global commercial P/C reinsurance market cycle is “past the pricing peak.“ Reinsurance renewals on Jan. 1, 2025, saw rate reductions overall.
- Reinsurance is often referred to as insurance for insurance companies.
In the first three quarters of 2024, Howden said global P/C reinsurance pricing across all lines of business averaged a 0.9% decrease. The broker says that’s the first overall drop since 2017.
But, the average decrease Howden found does not offer the complete picture of variability in individual sectors.
The bottom line is that any reinsurance premium relief felt by primary carriers will take time to reach insurance consumers.
Insurance buyers should expect more premium hikes as they renew their policies. However, they may see some premiums drop depending on the specific line of insurance and their risk profile.
Existing market conditions will persist in 2025.
