Average annual commercial insurance premium increases accelerated to 8.8% in the first quarter of 2023, up from 8% in the previous quarter, with commercial property rate increases far outstripping other lines, according to a report Wednesday from the Council of Insurance Agents & Brokers.
By account size, the council’s quarterly report showed large accounts with the largest increase of 11.4%, followed by medium accounts with 9% and small accounts with 6.2% in what was the 22nd consecutive quarter of increased premiums for all account sizes.
Property and cyber were singled out in the report to see turmoil and calm, respectively. Commercial real estate premiums rose 20.4% on average in the first quarter, “which is by far the highest of any line”; and compares with 16% in the previous quarter, the report said. Respondents cited inflation and natural disaster losses as the main drivers behind the sharp increase.
Rate increases for commercial cyber insurance slowed significantly with an average increase of 8.4% in the quarter, down from 15% in the previous quarter and peaking at 34.3% in the fourth quarter of 2021, according to the report.
On other major lines, umbrella debt rates rose 8.5% in the quarter, down from a 9.6% increase in Q4 2022; Commercial car prices rose 8.3%, up from 7.3%; General debt rates rose by 4.6%, down from 4.9%; and workers compensation levels fell 0.5% compared to a 1.1% decrease.