In the third quarter of 2024, premiums across all account sizes rose by 5.1% within the commercial property and casualty (P&C) insurance market, roughly the same as the 5.2% recorded in the previous quarter, according to The Council of Insurance Agents & Brokers’ (CIAB) latest quarterly survey.
In fact, Q3’24 marked the 28th consecutive quarter of premium increases across all account sizes.
According to the survey, small accounts had the lowest average increase out of all lines at 4.4%, with multiple respondents noting the increased appetite among carriers for small business, which may have potentially resulted in more competition and therefore a smaller average premium increase for small accounts when compared with medium and large accounts.
Additionally, signs of moderation in premium increases were far more evident when looking at specific lines of business during the third quarter of 2024, with umbrella being the one notable exception.
CIAB noted that the average premium increase across the five major lines of business: commercial auto, commercial property, workers compensation, general liability, and umbrella in Q3’24 was in line with the last quarter, sitting at 5.7% in Q3 compared to 5.6% in Q2.
Apart from umbrella, all lines posted premium increases lower than the previous quarter. Umbrella premiums saw
an 8.6% average increase in Q3 2024, marking the highest out of all lines and a 19% shift from Q2’s average increase of 7.2%.
Furthermore, multiple lines also saw premium decreases during the third quarter, with directors & officers (D&O) premiums falling by an average of -1.9%, the largest decrease out of all lines, followed by cyber at -1.5% and workers compensation at -1.4%.
Going back to umbrella, research by Gen Re showed that both claim frequency and claim severity for umbrella were noticeably up between 2020 and 2022, which the company attributed to more litigation and more nuclear verdicts.
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