The second quarter 2022 marked a full five years of premium increases for across all lines of commercial insurance business, according to the latest report from the Council of Insurance Agents and Brokers (CIAB).
The average premium increase across all lines of commercial business during Q2 was 6.1%, compared with 5.7% during Q1 2022.
As in recent quarters parts, cyber insurance led the way with average Q2 premium increases of 26.8%. Cyber insurance buyers have seen average premium increases of of more than 25% for five straight quarters. Demand continues to be very strong for cyber insurance, with 85% of respondents noting they had seen an increase, said CIAB.
The only other line with a double-digit average premium increase in Q2 was umbrella (11.3%). Commercial property, directors and officers, and commercial auto finished Q2 with average premiums up 8.3%, 7.9%, and 7.2% respectively.
Inflation was often cited as a driver of recent premium trends in the marketplace, according to the report. Inflation continues to increase property valuations in commercial property and, according to respondents, businesses in areas prone to natural catastrophes are seeing high deductibles with no rate relief. In wildfire areas, respondents said business in hard to place.
In commercial auto, which has seen 44 consecutive quarters of premiums increases, inflation was also a factor. The price of goods are up in general and inflation is pushing up loss and administrative costs, resulting in higher claims and subsequent pricing pressure.
Looking at account sizes, large accounts saw average premiums increase 7.5% compared with 6.2% during Q1. Small and medium accounts held stead at 6.4% and 7.3%, respectively.
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