Overall commercial property/casualty premiums increased slightly more than 8% on average in the third quarter, marking six full years of steady increases.
According to The Council of Insurance Agents and Brokers’ Q3 Market Survey, the 8.1% average increase in Q3 compared to 8.9% in Q2, is the 24th straight quarter with increases – seen across most lines of business except for workers compensation and directors & officers.
For the first time since the first three months of 2017, D&O premiums decreased, albeit slightly, at an average of -0.3%. This continued a trend of moderation in D&O since its peak average increase of 16.8% in Q2 2020. And for the seventh consecutive quarter, workers compensation saw premium decreases, at -2%.
At the other end of the spectrum, commercial property maintained the distinction of having the highest average premiums increases at 17.1% as reinsurance pricing, a lack of capacity, and upticks in the frequency and severity of events continued to affect the line.
Of note, the report this quarter showed clients’ ” rate fatigue” and possible developing distrust in the industry. Of those surveyed, 70% said clients described a level of rate fatigue and 48% said clients felt burdened by information requested by carriers on applications.
“More concerning,” said The Council, “was that 42% of respondents also mentioned that their client displayed a level of mistrust towards the industry, provoked by the persistent increases across most lines and cuts to coverage in key lines like commercial auto and commercial property.”
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