Commercial insurance prices increased by an average of 10.7% across all accounts, compared to 11.7% in the third quarter of 2020, according to the Council of Insurance Agents & Brokers fourth quarter commercial P / C market research on Wednesday.
The fourth quarter was the 13th quarter in a row with increased prices and the third quarter in a row where premiums increased for all lines.
Large accounts increased by 13.7%, followed by average accounts by 11.7% and small accounts by 6.7%.
According to business area, umbrella coverage had the largest premium increase of 21.3%, followed by board and executive coverage of 14.7% and commercial property of 1
The average premium increase for cyber coverage of 11.1% was the first time that figure broke double digits since the market index began to track the line, the report says.
Some lines saw capacity reductions, with 88% of respondents reporting a reduction in umbrella coverage capacity, 78% for commercial real estate and 64% for D&O and almost 50% for cyber.
"Umbrella and D&O responsibilities posed continuing challenges due to reluctance on the part of carriers to address these risks, and new cyber problems arose following a new rise in costly ransomware attacks in 2020," said Ken A. Crerar, President and CEO for the CIAB, the report said.
Claims for business interruptions continued to decline during the fourth quarter of 2020, but not to pre-pandemic levels.
Only 38% of respondents reported an increase in claims for business interruptions compared to 62% in the third quarter of 2020 and to a record 94% in the second quarter of 2020. However, all of these are higher than in the fourth quarter of 2019 "before the pandemic", when only 18% of respondents reported increased business interruptions.
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