The Council's Q4 2020 P/C Market Survey showed the hard market accelerating through year-end, with cyber, commercial property, and D&O posting some of the largest premium increases recorded in the survey's history. COVID-19 continued to generate uncertainty across multiple lines, reinforcing carrier conservatism. The survey provided brokers with essential market intelligence for January 2021 renewal planning.
February 17, 2021
EXECUTIVE SUMMARY
The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q4 2020 (October 1 – December 31):
- Q4 2020 was the 13th consecutive quarter of increased premiums, with respondents reporting an average increase of 10.7% across all-sized accounts. Segmenting out the data by account size, premiums increased the most for large accounts, at 13.7%, followed by medium accounts at 11.7%. Premiums for small accounts again saw a smaller average increase in Q4 2020, at 6.7%, compared to 7.1% in Q3 and 7.3% in Q2.
- Q4 2020 was also the 3rd consecutive quarter in which premiums increased for all lines, including Workers Compensation. Across all lines the average premium increase was 10.2% in Q4 2020, compared to 11.3% in Q3. Looked at individually, Umbrella recorded the highest premium increase, at 21.3%, followed by D&O Liability at 14.7% and Commercial Property at 12.9%.
- Underwriting capacity continued to contract for the most troubled lines. Nearly 90% of respondents reported a decrease in capacity for Umbrella, with more than half of those declaring the decrease “significant.”
- Respondents indicated that the COVID-19 pandemic’s impact was still being felt in Q4 2020. Most respondents said the pandemic impacted pricing, availability of coverage, renewals and underwriting trends.
