Commercial property premiums rose more in the first quarter than they have in more than 20 years as the first three months of the year marked the 22nd consecutive quarter of overall premium increases. , at 8.8%, according to the latest survey from The Council of Insurance Agents. & Brokers.
Changing the roles of cyber as a typical “outlier” in the insurance market to the recent increase in premium moderation, commercial property premiums increased by 20.4% in Q1 – for the first time since 2001 commercial property has recorded an increase of more than 20%, according to the Q1 Commercial Property/ Casualty Market Index respondents, one of which says that the property market is faster than anyone can remember.
Inflation and natural catastrophe risk were the main drivers of Q1 premium increases in commercial property. Loss of utilization is negatively impacted by supply chain issues, which increase repair costs.
Related: Tough Commercial Property Market to Continue as Property Owners Face Increased Risk
More than 60% of respondents also reported an increase in the frequency of commercial property claims from weather events.
Brokers who took the survey said that insurers are pushing for updates on replacement values and recent improvements, along with tightening the property’s risk exposure. Eighty-five percent said they saw a decrease in capacity for the property, with nearly half describing the decrease as “significant.”
Meanwhile, cyber premiums during Q1 increased by 8.4% as opposed to increases north of 20% a year ago and 15% in the previous quarter. The CIAB said that about a third of the respondents said that there is also an increase in the capacity for cyber, “suggesting the attitudes of the carrier towards the underwriting of the line may have begun to shift.”
Related: Clients Buy Higher Limits as Q1 Cyber Rises Following Moderating Trend: Marsh
The CIAB said it “seems as if the focus on encouraging the insured to adopt a more aggressive cyber risk management strategy has had some success. In Q1 2022, the number of respondents reporting cyber claims increased 72%. This quarter, that number fell to just 39%.”
Trends Commercial Lines of Business Insurance Price Trends Property
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