Premiums continue to rise as market hardens

24-11-2021

Premiums continue to rise as market hardens

Ken Crerar, president & CEO, Council of Insurance Agents & Brokers

Commercial insurance premiums rose for the sixteenth consecutive quarter in the three months to September 2021, according to the Council of Insurance Agents & Brokers. 

Its latest Commercial Property/Casualty Market Report showed an average rise in premiums across all account sizes of 8.9%, led by cyber business, which saw another record increase: Premiums for the line rose an average of 27.6%.

Those surveyed reported premium rises across all lines other than workers compensation, which fell by an average of 0.3%. 

“Reported changes in underwriting were consistent with reported hard market conditions, according to respondents, who noted more disciplined underwriting, stricter loss controls, and more in-depth reviews of loss history,” the report notes. “This was especially evident in Cyber. Some respondents noted their clients couldn’t get coverage at all if they did not implement specific carrier-requested cybersecurity measures.”

According to respondents, the prevalence of cyberattacks, specifically ransomware, phishing, and social engineering attacks, was among the primary drivers of cyber premium increases.

“Carriers continued to take a hard line on cyber risks in Q3 2021,” said Ken A. Crerar, president and CEO of the council. “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.”

The survey also saw an uptick in claims for lines like commercial property, commercial auto, and workers’ compensation as employers began to bring employees back into the workplace.

The Commercial P/C Market Index is a quarterly market report on market conditions, pricing practices and trends using data collected from CIAB’s broker members.

premiums, report, loss, insurance, reinsurance, underwriting, cybersecurity, Property/Casualty, rates, Council of Insurance Agents & Brokers, North America

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