According to a new survey from The Council of Insurance Agents & Brokers (CIAB), premium prices continued to increase by 8.9% in Q3 2021, up slightly from the average increase of 8.3% recorded in the previous quarter.
When segmenting the data by account size, large accounts had the highest increase out of all account sizes, at 10.4%, while prices for small accounts increased the least, at 6.2%.
Cyber once again saw a record increase in premiums in Q3 2021, at 27.6%.
Respondents agreed that one of the primary drivers behind these increases was the rise in cyberattacks, specifically ransomware, phishing, and social engineering attacks.
They also pointed to the fact that Cyber had been historically underpriced in the past, due to a lack of historical data and competition incenting carriers to keep prices low, so the line has been experiencing an adjustment period in terms of premium pricing.
Ken Crerar, President/CEO of the council said: “Carriers continued to take a hard line on cyber risks in Q3 2021. Brokers and clients that take proactive action on cybersecurity risk by implementing stricter loss controls, such as requiring multi-factor identification for access to company systems and employee training, will be at a distinct advantage when it comes to finding robust, affordable cyber coverage.”
Respondents also saw an uptick in claims for lines like Commercial Property, Commercial Auto, and Workers’ Compensation as employers began to bring employees back in to the workplace. “Claims are still below pre-pandemic levels but increasing as more people are on the road and back to work,” explained one respondent from a large Southwestern firm. “Courts started to open, people were out on the road driving, and severe weather events increased,” said another respondent from a large Northeastern firm.”
Leveraging technology was again a key theme in broker responses when asked how they would drive organic growth and recruit and develop talent.
One respondent from a large Northeastern firm commented: “New technology platforms are creating opportunities for commercial insurance brokers to serve clients without interruption in real-time, providing consulting services based upon data, not guess-work, and responding to client service needs promptly and accurately.”
And as for recruiting and developing talent, “We need to be creative, hire people from other locales who can work remote,” said one respondent from a large Northwestern firm. And according to another respondent from a large Midwestern firm, “The ease for employees to change employers in working virtual can either be a problem or an opportunity for brokers.”