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.”
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.