NEWS RELEASE – FOR IMMEDIATE RELEASE
Contact: Brianne Spellane
Senior Director of Communications & Content Strategy
COMMERCIAL AUTO REMAINED “A CHALLENGE” FOR INDUSTRY, ACCORDING TO CIAB’S Q2 2018 MARKET INDEX
WASHINGTON, D.C. – August 20, 2018 – Average premiums across all sized accounts increased by 1.5 percent in Q2 2018, according to The Council of Insurance Agents & Brokers’ latest Commercial Property/Casualty Market Index Survey. The survey’s findings continued a trend of increased premiums that began in Q4 2017.
With the exception of Workers’ Compensation, which experienced a decrease in premiums of 2.9 percent, all lines of business saw either no or slight increases in premiums in Q2 2018, according to the survey. The average increase across all lines was 2.0 percent, compared to 2.2 percent in Q1 2018.
Respondents agreed that Commercial Auto—a continuing problem line for the industry—and Commercial Property, experienced the most stress in terms of premium pricing and underwriting in Q2 2018. Survey results showed that Commercial Auto and Commercial Property both experienced the highest increase in premium pricing, at 8.2 percent and 2.2 percent, respectively. Several respondents also noted a tightening in underwriting as well as a decrease in capacity for both lines.
“Although Commercial Auto continues to be a concern for brokers and carriers alike, other lines appear to stabilize across the board, following several quarters of soft market conditions,” said Ken A. Crerar, President/CEO of The Council. “As we enter the 2018 hurricane season, The Council will continue to monitor the impact of natural catastrophes on commercial lines.”
Demand for Cyber insurance remained exceptionally high: 77 percent of respondents reported an increase in demand for Cyber.
Many respondents also noted that automation, specialization, and above all, incorporation of technology, were increasingly important in this digital age—especially when it comes to recruiting younger talent.