Commercial insurance prices increased by an average of 10% for all size accounts, but troubled lines such as cyber and umbrella saw much higher increases, according to The Council of Insurance Agents & Brokers first quarter commercial P / C Market Survey released Friday.
The average increase of 10% is compared with an increase of 10.7% in the fourth quarter and 11.7% in the third quarter of 2020, a sign that the rate of premium increase continues to be measured, according to the Washington-based industry association.
Large accounts experienced the largest increase and recorded an average increase of 12.9%, while average accounts had an average increase of 10.9%. Small accounts increased by 6.3%.
The premium increased for all industries, including work compensation for the fourth quarter in a row, but the increases were highest for umbrella and cyber.
Cyber saw an average increase of 1
Despite the significant increase, 93% of respondents reported an increased demand for cyber insurance during the first quarter.
Umbrella saw an average price increase of 19.7%, a decrease from 21.3% during the fourth quarter but reflects the continued problems that brokers have with this industry.
The guarantee was sharply tightened for troubled lines and almost 80% of respondents reported a decrease in umbrella capacity and 73
Managers and executives, commercial property and employment practices were the other three business areas that reported an average premium increase of more than 10%, 15.1%, 12% and 10.8%.
Brokers reported similar, if less pronounced, increases in deductibles, reductions in margins and shrinkage capacity for most lines. "Disciplined warranty continued," said a Northeastern respondent. [1 9659002] "Carriers continued to push for interest rate hikes in the umbrella and noted factors such as nuclear judgments or social inflation, and began to retreat on cyber risk in the face of rapidly increasing claims from ransomware and attacks exploiting the remote workforce," said Ken A. Crerar, CEO of the council in a statement.
The impact of the COVID-19 pandemic was still felt during the first quarter, with pricing, coverage availability, renewals and warranty trends all affected, according to most respondents.
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