Premium Increases Continued for 19th Consecutive Quarter in Q2

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August 17, 2022 |

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The pace of premium increases continued to moderate in the second quarter of this year, though the April-through-June period still marked as the 19th consecutive quarter of rising premiums, according to the Council of Insurance Agents and Brokers (CIAB).

In its "Q2 2022 P/C Market Report," the CIAB said its market survey respondents reported an average premium increase of 7.1 percent across all account sizes during the quarter.

The CIAB found signs of pricing moderation emerging for insurance lines such as flood, medical malpractice, and surety bonds, while others like cyber and umbrella continued to experience upward premium pressure, though not to the extent of prior quarters since late 2020.

Workers compensation premiums continued to decrease during the second quarter, the CIAB said, at an average of 1.2 percent, making workers compensation the only line to experience a decrease.

Survey respondents indicated that commercial property and commercial auto were the insurance lines most affected by recent inflation, according to the CIAB, as property values, building material costs, and the costs of auto parts were affected by inflation, driving up premiums as insurers adjusted for increased costs. Inflation also caused claims costs to increase due to higher loss costs and administrative costs for filing claims, the report said.

Cyber premiums increased 26.8 percent during the second quarter, down from 27.5 percent in the first quarter and 34.3 percent in the fourth quarter of 2021. Still, brokers surveyed mentioned tightening limits, capacity issues and higher deductibles, as well as insurer requirements for policyholder risk management controls.

August 17, 2022