2024 ended as steady as ever – with “no real change in current market conditions” – as respondents of a recent survey reported most lines of business in the last quarter had average increases in premiums about the same or lower than the previous quarter.
According to The Council of Insurance Agents & Brokers (CIAB) quarterly survey, commercial property/casualty premiums across all account sizes rose by 5.4% in the fourth quarter 2024 – about the same as the third quarter’s 5.1% and the second quarter’s 5.2%.
CIAB said the last quarter of 2024 was the 29th consecutive quarter of premium increases across all account sizes.
While commercial property remained a challenge in Q4, premiums increased by an average of 6% compared to nearly 8% in Q3 and almost 12% in Q4 2023.
Premiums for D&O, workers’ compensation, employment practices, and cyber fell in Q4. Cyber had the largest decrease out of all lines of 1.8%. CIAB said 64% of survey respondents reported more underwriting capacity for cyber insurance.
“Survey results showed increased capacity for the line, and industry reports demonstrated an increase in carriers competing for U.S. cyber business, two factors often correlated with lower premiums,” CIAB said. “Cyber resiliency may also have contributed, as industry cyber loss ratios have continued to fall from their peak in 2020 and 2021, despite a notable rise in ransomware attacks.”
Commercial auto and umbrella each went up in Q4. Marking the 54th straight quarter of increases, commercial auto had the highest average increase in premiums out of all lines, at 8.9%. Umbrella had an average premium increase of 8.7% in Q4.
“Claims for [commercial auto] seemed to have risen, with 50% of respondents reporting an increase in claims in Q4 2024,” CIAB reported. “At the same time, in contrast with the cyber line of business, underwriting capacity for commercial auto was down, with 41% of respondents noting a decrease.”
Topics Trends Commercial Lines Pricing Trends
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