The Council of Insurance Agents & Brokers (CIAB) has reported that average premium prices across almost all lines have continued to see improvements in pricing after three years of soft market conditions, with increases of 1.7% recorded across all lines of business, compared to 0.3% in Q4 2017.
However, CIAB also observed that the market remained relatively stable despite weathering a record-breaking year of natural catastrophe losses, largely due to the excess risk transfer capacity available from both traditional and non-traditional capital, which has led to aggressive underwriting and competitive pricing.
Ken A. Crerar, President and Chief Executive Officer (CEO) of CIAB, commented: “While we find ourselves in the beginning of a transitional market, carriers continued to be aggressive on new business due to excess and alternative capital in the market.”
Average commercial P&C insurance premium changes, 1999 – Q1 2018
CIAB found that cyber insurance experienced the highest levels of demand, with 73% of companies reporting ‘somewhat’ or ‘significant’ increases in demand for cyber coverage.
Similarly, Commercial Auto continued to see high demand, with rates rising by 7.7% at Q1 2018, marking the 27th consecutive quarter of increases for this line.
Commercial property rates rose by 3.4% in the first-quarter, up from average rate increases of 2.4% witnessed in Q4 2017.
Additionally, driving organic growth remains the top priority for re/insurers in 2018, according to CIAB, with hiring and recruiting talent and enhancing the customer experience also ranking among primary concerns.
