Premiums increased for the 20th consecutive quarter in Q3 2022, with respondents reporting an average premium increase across all account sizes of 8.1%, up from the increase of 7.1% recorded in Q2.
Prices remained relatively stable in Q3 2022 for most lines of business, with prices increasing by an average of 7.0% across all lines of business. Workers compensation prices continued to decrease, at an average of – 0.7%. It was the only line that saw a decrease.
Inflation was top of mind for brokers this quarter—95% of respondents agreed inflation had influenced key market trends such as premium pricing. Its influence was also felt in the talent arena, with multiple respondents saying hiring or replacing employees had become more expensive because of inflation.
The commercial property and cyber lines of business remained concerns for respondents. Natural catastrophes and inflation exerted upward pressure on property premiums. And while respondents signaled some relief in cyber prices, they still highlighted strict underwriting, reduced limits, and higher deductibles across the board for that line.
Commercial auto was affected by inflation driving up the cost for repairs, and thus claim costs. Auto claims were also up, possibly due to the post-pandemic resurgence in retail and the increasing number of employees commuting to the office all contributing to more vehicles on the road.
Regarding current market conditions, respondents saw an opportunity to show their value to clients by assisting them with implementing robust risk mitigation techniques to bring premiums down.
Respondents also saw an opportunity to take advantage of the increasing popularity of “work from anywhere” to search for talent outside of their geographical area in order to address talent needs.
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