FOR IMMEDIATE RELEASE
Commercial P&C Pricing Steady in Third Quarter, According to CIAB Survey
WASHINGTON, D.C. – Commercial property/casualty pricing in the third quarter remained steady, according to The Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey.
“The market looked a lot like the second quarter,” said The Council’s President/CEO Ken A. Crerar. “Pricing in general increased modestly last quarter. But without making any predictions there were indications that the market hardening tapered off.”
On average, pricing rose for large, medium and small accounts at a rate of 3.4 percent compared with 4.3 percent in the second quarter of 2013, according to the charts prepared by Barclays Research based on The Council’s data.
Generally, pricing for the commercial lines surveyed continued to rise moderately. A few lines – business interruption, umbrella, commercial property and workers’ compensation – showed signs of flattening in the third quarter – declining slightly more than some other lines. That result was mostly likely because insurers had already factored in added risks. However, brokers’ experiences on those lines varied across the country depending on location and circumstances. While workers’ compensation prices eased a bit in some areas, it still remained a tough line to place.
Brokers surveyed reported that wind/hail deductibles for property were being added in some regions of the country, particularly in the Southeast and Midwest, which experienced some severe weather over the summer. A few brokers said carriers were hesitant to write business with large roof exposures. A broker in the Southwest reported price hikes as much as 20 percent for flood insurance.
Brokers across the country said carriers’ appetite for new business was healthy and aggressive. Some carriers were more willing to negotiate rate increases on good existing business, but terms and conditions continued to be tight. And any account with bad experience still met with close scrutiny.
The brokers also noted problems with Employment Practices Liability – premiums and retentions were increasing along with tightening terms and conditions.
On other topics, the brokers said that talent management (70 percent) was their key concern with uncertainty in health insurance (58 percent) coming in second on the list. The top political issues facing the country remained the economy and the federal deficit, but 68 percent said the lack of leadership in the country was a major problem.
The Council’s survey is the oldest, most authoritative source of existing market conditions, pricing practices and trends, dating back to 1999.
P&C Market Survey Contact:
Zach West
Senior Content Specialist/Copy Chief, Leader’s Edge
