Premiums across all account sizes rose by an average of 5.2% in Q2 2024, down from 7.7% in the previous quarter. Premium increases across the lines of business were similarly low, at 5.6%.
Notably, four different lines of business recorded premium decreases this quarter, not just workers compensation, a clear sign that market conditions eased in Q2 2024—at least for certain lines of business. Workers compensation was down by 2.2% on average; cyber premiums fell by 1.7%; D&O premiums were off by an average of 1.0%; and employment practices liability premiums decreased marginally, at just 0.1%. It remains to be seen whether this trend will hold in future quarters.
Other lines weren’t so lucky. Commercial property and commercial auto insurance remained a challenge for many respondents, especially for cat-vulnerable property and large auto fleets—commercial auto in fact recorded the highest average premium increase out of all lines at 9.0%. Several respondents reported that carriers were still pushing for increases in property valuations and putting insureds under heavy scrutiny, and roughly half of respondents observed both an increase in claims for commercial auto and cuts in underwriting capacity for the line.
Technology was a focus this quarter. One respondent from a large Midwestern firm said that carriers were using AI sources of information to assess things like roof ages. A respondent from a Southeastern firm reported that there was “much less human involvement” in both renewals and placing new business on the carrier side, and that “all account size underwriting appears to be suffering from less experienced individuals and more dependence on ‘automated’ underwriting.”
