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Insurance premium price increases slowed down in Q4 2023, according to the Council of Insurance Agents & Brokers (CIAB). Nevertheless, the latest quarterly survey saw consumers paying higher prices for the 25th consecutive quarter.
Commercial property premiums rose 11.8%, down from 17.1% in Q3 2023. However, that was still the highest increase across all insurance lines.
- The same factors continue to drive property premiums skyward: reinsurance affordability and availability issues, natural catastrophe losses, and economic inflation.
By the numbers:
- 7.0%: average premium increase across all account sizes, down from 8.1% in Q3
- 11.8%: average commercial property premium increase
- 0.7%: average cyber premium increase
- 0.1%: average D&O premium decrease
Even better news for consumers: Workers’ compensation decreased for the eighth consecutive quarter, at an average of -1.8%.
What we’re watching: Rate fatigue is weighing on insureds. As with the prior quarter, 80% of respondents said future premium increases were the top concern for consumers. Current high premiums and limitations on coverage lines were the second and third areas of most concern for clients.
Client negativity towards the insurance industry grew slightly more pronounced. Respondents reported that an average of 45% of their clients felt some level of mistrust towards the sector, up from 42% last quarter.
Go deeper: Dig into all the Q4 2023 CIAB P/C quarterly survey data here.
