Commercial Insurance Price Increases Stay Level But Clients Still Worried: CIAB

Stabilization” and “moderation” continued to be the operative words for premium increases in the commercial property/casualty market, but many clients remain concerned about future hikes, according to a new survey from The Council of Insurance Agents & Brokers. Overall, premiums in the fourth quarter 2022 went up for the 21st consecutive quarter — up 8% across all account sizes, compared with up 8.1% in the third quarter 2022.

The top client concerns were “future premium increase” and “higher current premium,” according to Q4 Commercial Property/Casualty Market Index respondents. This may be the reason, said CIAB, that “enhancing customer experience” was stated as a priority for more agents and brokers that took part in the survey, since these intermediaries are usually the bearer of news to clients regarding premium hikes. For Q4, 45% of respondents stated it as a priority, when “enhancing customer experience” typically falls in the 20-25% range as a priority.

“We have the opportunity to educate our clients on what is happening in the marketplace and to prepare them for the ever-changing coverage and premium implications of this ‘interesting’ insurance market,” CIAB highlighted as a quote from one respondent.

Helping clients navigate the market may also be the reason “recruiting and retaining top talent” was a top priority — and challenge — for agents and brokers, especially as retirements outnumber new, younger professionals entering the industry. Respondents pointed to the difficulties in training within a hybrid work environment, and finding the right skills or cultural fit. “Making time to develop succession candidates needs to become a core competency for our success,” noted one broker respondent.

Returning to premium pricing, increases in cyber and umbrella were not as high as in previous quarters, according to survey results. Umbrella increases dipped below 10% for the first time in three years. Cyber experienced premium increases of 15% in Q4, compared to increases of 20%, 26.8% and 27.5% in the previous three quarters.

The highest Q4 hike belonged to commercial property. Premiums were up an average of 16%, with 73% of respondents reporting inflation was affecting the line.

Topics Trends Commercial Lines Business Insurance Pricing Trends