Two reports. Same conclusion.
The Council of Insurance Agents & Brokers (CIAB) just released its fourth quarter of 2017 analysis. The Fourth Quarter 2017 Commercial Property/Casualty Market Index Survey said P&C rates rose for the first time in last year’s last quarter.
Catastrophe and cyber events in the third quarter caused a rate rise of 0.3% across the board on all-sized accounts. That compares to a drop of 1.3% in the third quarter of 2017.
President and CEO Ken Crerar, the council’s president and CEO said it’s not a surprise and “as expected, coming off a historic nat cat season, we are in a transitional market, but it is more stable than anticipated.”
Average rates for commercial auto, work comp, commercial property, general liability and umbrella rose for the second straight quarter at an average of 1.7%. That’s up from the 1% rise in the third quarter.
• Commercial auto has poor loss ratios and jumped a worrisome, and 26th straight rise of 7.3%
• Commercial property rose 2.4%
• General liability jumped 0.1%
• Umbrella is up 0.6%
• Workers’ compensation fell 2%
Marsh’s latest market index report says the global pricing for insurance rose slightly in the last quarter of 2017. It is the first rise since early 2013 and the cause is what Marsh calls an “historic cluster” of natural catastrophes.
The report says if you’re counting it’s been 18 quarters since we’ve seen a price increase.
The fourth quarter of 2017 saw an average price jump of 0.8% You can compare that to the 1.9% drop in the third quarter to come to the conclusion the increase is significant. Overall it led to a 3.2% increase which beats the 2.4% decline in the third quarter.
Marsh’s global placement head Dean Klisura said, “Losses from Hurricanes Harvey, Irma and Maria and wildfires in California drove increases in property pricing in the U.S. Pricing in all global regions showed either a moderate increase in the fourth quarter or a slowing of the pace of decrease.”
Source links: Carrier Management, Business Insurance