NEWS RELEASE – FOR IMMEDIATE RELEASE
Contact: Robert Boyce
Director of Market Intelligence & Insights
PREMIUM PRICING EXPERIENCED SLIGHT INCREASES ACROSS MOST LINES, ACCORDING TO CIAB Q3 2018 P/C MARKET INDEX
WASHINGTON, D.C. – November 13, 2018 – Premium pricing across all sized accounts saw similar increases to Q3 2018, according to The Council of Insurance Agents & Brokers’ quarterly Commercial Property/Casualty Market Index Survey, with an average premium increase of 1.6 percent. Similarly, the average premium increase across all lines of business was 1.9 percent, in line with Q2’s average increase of 2.0 percent. For yet another quarter, Workers’ Compensation was the only line that saw a percentage decrease in premium pricing, as carriers sought to use it to balance out corresponding increases in other lines.
Commercial Auto again saw outsized increases, with an average premium rate increase of 7.0percent. “Following 12 quarters of soft market conditions, our industry has experienced moderate tightening across the majority of property/casualty lines, with the exception of Commercial Auto,” explained The Council’s President/CEO, Ken Crerar. “Due to distracted driving and more people on the roads, Commercial Auto claims have increased in both frequency and severity and it remains an industry-wide concern that The Council will continue to monitor in 2019.” Respondents agreed, noting that Commercial Auto increases were beginning to impact the pricing of other lines, such as Umbrella and General Liability.
Respondents’ clients were increasingly interested in cyber insurance with 76 percent of respondents noting that they had seen an increase in demand for that particular line of business. Considering 62 percent of respondents also said that “cyber risk” was one of their clients’ top three concerns in Q3, the sustained demand for cyber insurance was not surprising. The only other lines where respondents saw similar demand were in Commercial Auto and Construction Risks, where 41 percent and 47 percent of respondents, respectively, observed an increase.
Technology-led insurance innovation was also highlighted multiple times in broker responses. Many respondents saw it as essential to helping their firms drive organic growth and enhance the customer experience, with more than one respondent observing that only firms that learn to utilize new technology effectively will survive in the coming years.