Premiums for commercial insurance rose 8.9% in the second quarter of 2023. That’s a slight bump from the 8.8% we saw in the first quarter. It is the 23rd consecutive quarter where rates increased.
That’s the conclusion of the latest pricing survey from the Council of Agents & Brokers (CIAB). Property rates skyrocketed in the quarter but cyber liability and other lines did not rise as much.
Commercial property’s increases averaged 18.3%. That’s down from the 20.4% of the first quarter but is still very high. Natural catastrophe losses and inflation caused increase in property values are why.
Cyber premiums jumped 3.6%. That’s down from 8.4% in the first quarter and one of the biggest drops in prices seen in that line of insurance in a log time. Part of the reason is because insurers added more capacity.
Other lines:
- Commercial auto — up 10.4% from 8.3% in the first quarter
- Umbrella liability — rose 8.1% and down from 8.5% in the first quarter
- General liability — increased 5.2% and that’s up from 4.6% in the first quarter
- Work comp — fell 0.7% compared to a 0.5% drop in the first quarter
Ivans Insurance Services monthly survey for had similar results. It found commercial property rates rising 9.7% in July. That’s up from 9.3% in June.
- Commercial auto — rose 6.6% compared to 6.5% in June
- BOP — rose 7.8% while June’s figure was 7.6%
Some lines — however — saw decreases in pricing:
- General liability — rates rose 5.4% compared to June’s 5.6%
- Umbrella — up 4.9% when compared to June’s 5.9%
- Workers’ compensation — dropped 0.5% in July compared to 0.7% in June
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