The Council's Q3 2019 P/C Market Survey showed a rapidly hardening commercial market with significant premium increases across property, umbrella, D&O, and management liability lines. Social inflation and nuclear verdict trends were cited as major drivers of casualty rate increases. The results marked one of the sharpest market transitions in the commercial P&C sector in over a decade.
November 25, 2019
EXECUTIVE SUMMARY
The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q3 2019 (July 1 – September 30):
- Premium pricing across all-sized accounts increased moderately at 6.2% in Q3 2019, marking the eighth consecutive quarter of rate increases. Large accounts were impacted the most by the hardening market, recording an average premium increase of 7.6%, compared to 5.6% in Q2 2019.
- With the exception of Workers’ Compensation, signs of market hardening were seen across all commercial lines of business, which experienced slight-to-moderate pricing increases in Q3 2019. Umbrella and Commercial Auto were hit hardest in Q3, with average price increases of 9.8% and 9.1%, respectively. The average premium increase across all major lines was 5.9%, in comparison to 4.6% in Q2 2019 and 3.4% in Q1 2019.
- Demand for Cyber was as high as ever, with 79% of respondents reporting an increase in demand for cyber insurance. According to a respondent from a midsized Southeastern firm, “Clients are more aware of the need for the product now.”
- Seventy-three (73) percent of respondents named “future premium increase(s)” as a topthree client concern, which seems prescient considering the continued market firming in the past few quarters. “Cyber risk” and “limitations on coverage” tied for second place with 55% of respondents identifying them both as top-three concerns.
- Premium pricing across all-sized accounts increased moderately at 6.2% in Q3 2019, marking the eighth consecutive quarter of rate increases. Large accounts were impacted the most by the hardening market, recording an average premium increase of 7.6%, compared to 5.6% in Q2 2019.
- With the exception of Workers’ Compensation, signs of market hardening were seen across all commercial lines of business, which experienced slight-to-moderate pricing increases in Q3 2019. Umbrella and Commercial Auto were hit hardest in Q3, with average price increases of 9.8% and 9.1%, respectively. The average premium increase across all major lines was 5.9%, in comparison to 4.6% in Q2 2019 and 3.4% in Q1 2019.
- Demand for Cyber was as high as ever, with 79% of respondents reporting an increase in demand for cyber insurance. According to a respondent from a midsized Southeastern firm, “Clients are more aware of the need for the product now.”
- Seventy-three (73) percent of respondents named “future premium increase(s)” as a topthree client concern, which seems prescient considering the continued market firming in the past few quarters. “Cyber risk” and “limitations on coverage” tied for second place with 55% of respondents identifying them both as top-three concerns.
Click here to download the full Commercial Property/Casualty Market Report Q3 2019.
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 [email protected].
