The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q2 2020 (July 1 – September 30):
- Evidence the market continued to harden was apparent in Q3 2020, with premiums increasing by an average of 11.7% across all-sized accounts, marking the 12th consecutive quarter of increased premium pricing across all-sized accounts. As with the previous quarter, the impact was most apparent for large and medium-sized accounts, which recorded increases of 15.3% and 12.7%, respectively. On the other hand, small accounts experienced an average increase of 7.1%, slightly lower than the 7.3% increase in Q2 2020.
- Premiums continued to increase for all lines of business in Q3 2020, Workers Compensation included. Umbrella and D&O premiums increased by far the most in Q3 2020, at 22.9% and 16.1%, respectively, followed by Commercial Property with an increase of 14.2%.
- Underwriting capacity was down for the most troubled lines in Q3 2020, with 90% of respondents reporting capacity was down for Umbrella, nearly 60% of which said capacity had significantly decreased.
- Results from COVID-19 related questions suggested the pandemic’s impact was still being felt in Q3 2020. Most respondents said the pandemic impacted pricing, availability of coverage, renewals and underwriting
trends. They also reported increased claims activity for Business Interruption and Workers Compensation.
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 Zach West at firstname.lastname@example.org.