The upward trajectory in insurance pricing that commenced in 2018 persisted throughout 2023, with commercial property insurers spearheading the surge, according to quarterly pricing reports from the Council of Insurance Agents & Brokers.
The Council’s closely monitored reports revealed substantial spikes in property rates during the initial months of the year. While the rate of increase slightly tempered as the year advanced, property buyers continued to grapple with price hikes that far exceeded inflation rates.
Commercial property premiums, a focal point of the surge, surged by more than 20% in the first quarter. Additionally, umbrella liability rates witnessed an 8.5% increase, commercial auto rates rose by 8.3%, general liability rates climbed by 4.6%, and workers’ compensation rates experienced a marginal decline, as reported by the Council.
Property insurers themselves faced significant hikes in their coverage, particularly in property reinsurance rates at the onset of 2023. The ascent in primary property rates endured through the third quarter.
Forecasts for 2024 indicate a continuation of rate hikes, including persistent increases in property insurance rates. Liability lines may also witness rising rates.
While a moderation in inflation is anticipated in 2024, there is optimism that it may eventually alleviate some of the rate hikes, according to a report. Additionally, more restrained property increases during year-end reinsurance renewals could provide relief for primary insurers.
