Premium + Pricing Increases
According to broker survey data collected by The Council of Insurance Agents & Brokers, premium pricing across all-sized accounts increased moderately at 6.2% in Q3 2019, marking the eighth consecutive quarter of rate increases. Those impacted most by the hardening marketing were large accounts, 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. Lines of business hit hardest in Q3 were Umbrella and Commercial Auto, which experienced average price increases of 9.8% and 9.1%, respectively.
The average premium increase rose across all major lines to 5.9%, in comparison to 4.6% in Q2 2019 and 3.4% in Q1 2019.
The demand for Cyber insurance coverage was as high as ever, with 79% of survey respondents reporting an increase in demand for cyber insurance. This increase in demand could be attributed to an increase in overall education and awareness of the importance of the product.
Seventy-three (73) percent of respondents named “future premium increase(s)” as a top-three client concern, which seems insightful 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.