NEWS RELEASE – FOR IMMEDIATE RELEASE
Contact: Brianne Spellane
Director of Communications & Content Strategy
PREMIUM PRICING INCREASED
FOR THE FIRST TIME IN THREE YEARS,
ACCORDING TO Q4 2017 CIAB MARKET INDEX
WASHINGTON, D.C. – March 1, 2018 – Average rates increased for the first time in 13 quarters, according to The Council of Insurance Agents & Brokers’ Q4 2017 Commercial Property/Casualty Market Index Survey. The Council surveyed broker members from across the country for the October 1-December 31 span.
Three months after massive catastrophes and cyber events in the third quarter, commercial property/casualty rates saw a minimal increase of 0.3 percent across all-sized accounts, compared to a 1.3 percent decrease in Q3 2017, according to results.
Across five major lines of business, including commercial auto, workers’ compensation, commercial property, general liability and umbrella, average premiums increased for the second consecutive quarter, by 1.7 percent, compared to 1.0 percent in Q3 2017.
“As expected, coming off a historic nat cat season, we are in a transitional market but it is more stable than anticipated. Due to abundant risk transfer capacity in the form of excess traditional and nontraditional capital, competition remains high in the market and carriers continue to be aggressive on new and existing business,” said Ken A. Crerar, President/CEO of The Council.
High profile cyber events in the summer and fall of 2017 put cyber risk as the number one concern for businesses, which led to an increase in demand for cyber coverage, according to respondents. However, there was no sign that this increase in demand translated into policy purchases, which is consistent with results from The Council’s most recent Cyber Market Watch Survey, released in December.