MARKET CONDITIONS AND COVID-19 LED TO CONTINUED PRICE INCREASES IN Q1 2021, ACCORDING TO CIAB MARKET SURVEY

Q1 2021 was the 14th consecutive quarter of increased premiums, with respondents reporting an average increase of 10% across all-sized accounts. As with previous quarters, premiums increased the most for large accounts, at 12.9%, followed by medium accounts at 10.9% and small accounts at 6.3%.

Premiums increased for all lines of business, including Workers’ Compensation, for the 4th consecutive quarter. Highest among them was again Umbrella, with an average premium increase of 19.7%, followed, notably, by Cyber at 18%.

Underwriting tightened significantly for troubled lines like Cyber and Umbrella. Additionally, capacity contracted for both of those lines, with nearly 80% of respondents reporting a decrease in capacity for Umbrella, and 73% reporting the same for Cyber.

Respondents indicated that the COVID-19 pandemic’s impact was still being felt in Q1 2021. Most respondents said the pandemic impacted pricing, availability of coverage, renewals and underwriting trends.

Click here for the Q1 2021 COVID-19 Supplement Material.

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