Growing Fatigue Among Insureds Due to High Rate Increases
Q2 2023 was the 23rd consecutive quarter of premium increases, at 8.9%. Medium-sized accounts saw the highest increase, at 9.8%, though only slightly higher than the 9.7% increase in premiums for large-sizedaccounts.
Commercial property had the highest reported increase out of all lines, at 18.3%. Natural catastrophe losses and rising property values were among the primary drivers of these increases, according to respondents. Issues with reinsurance capacity led to difficulties placing property policies in the admitted market, especially for coastal property, as well as non-renewals from some carriers on existing accounts. Cyber premiums rose by only 3.6% this quarter, the strongest sign of relief for the line seen so far. Respondents also reported greater carrier appetite for underwriting cyber.