Willis Towers Watson (WTW) just released its assessment of third quarter commercial insurance rates. An overall average hike of 6.1% isn’t far off from similar reports.
According to WTW’s director of insurance consulting and technology, Yi Jing, commercial property had an average rate hike hitting double-digits. So did excess-umbrella liability.
“Continuing on an upward trajectory, rates in the third quarter reflected a subtle shift from the prior quarter,” Jing said. “While the overall increase rate was somewhat similar to the prior quarter, some coverage lines experienced notable double-digit increases.”
While commercial and personal lines rates continue to rise, brokerage Woodruff Sawyer is predicting a softening of the hard market as we go into 2024. The prediction is for single-digit rates for all P&C lines.
Ivans is thinking the same thing and predicts that increases for property insurance will be dropping.
Woodruff Sawyer’s report says the move toward single-digit rate increases will depend a lot on inflation and catastrophe losses, and with reinsurance costs. “Contributing to the challenges in the property market is valuation,” the report said. “Some insureds have not been proactively increasing replacement cost values, and when large industry losses occur, it has a negative impact on the entire industry.”
Source link: Business Insurance — https://bit.ly/41lHZRdSource link: PropertyCasualty360.com — https://bit.ly/3GFZAK4