August 22, 2019
The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q2 2019 (April 1 – June 30):
- Premium pricing across all-sized accounts saw moderate increases in Q2 2019. Pricing for medium-sized accounts increased the most in comparison to large and small accounts, at 6.2%, nearly double its Q1 2019 increase of 3.5%.
- All lines of business, with the exception of Workers’ Compensation, experienced slight-to moderate pricing increases in Q2 2019. Commercial Property and Commercial Auto were hit the hardest in Q2, with increases of 8.5% and 8.4%, respectively. The average premium increase across all major lines was 4.6%, in comparison to 3.4% in Q1 2019 and 2.1% in Q4 2018.
- Cyber was again top of mind for respondents’ clients in Q2 2019, with 74% of respondents reporting an increase in demand for cyber insurance. According to a respondent from a midsize Southeastern firm, “many of our accounts purchased cyber liability this year whereas they declined in past years.”
- “Future premium increase” was by far the greatest concern to clients in Q2 2019, with 78% of respondents naming it as a top-three client concern, in line with the uptick in premiums recorded this quarter. “Cyber risk” and “limitations on coverage” were also sources of client anxiety, with 56% and 40% of respondents identifying them as a top-three concern, respectively.
The Council relies on data from broker members to create this report. To participate in future surveys or for questions/comments, please contact The Council’s Rob Boyce at Robert.Boyce@ciab.com.