Premiums for commercial property and casualty insurance jumped an average of 8.9% in Q2 2023 – marking 23 consecutive quarters of increases.
At Schauer Group, we want to help our clients understand the factors that are influencing hard market conditions. Please reach out to us if you have questions or would like to discuss these issues.
A recent report about Q2 commercial property and casualty market trends from The Council of Insurance Agents & Brokers shows premium increases across commercial lines were about the same or slightly higher in Q2 than in Q1.
The biggest rate increase continues to be seen in commercial property, where rates rose 18.3% in Q2. Property premiums are climbing at a faster pace than rates for other lines because of higher property values – a result of inflation – and repeated severe weather losses. (In the first half of 2023 alone, severe thunderstorms across the United States led to $34 billion in insured losses, according to data from Swiss Re.)
In addition, 80% of respondents surveyed for The Council’s Q2 report said they’re seeing decreased capacity among insurance carriers for commercial property, in some cases causing companies to non-renew properties.
Overall, clients in Q2 were feeling “rate fatigued,” according to the report, and as such, they were choosing to lower their coverage limits or take on higher deductibles to find some pricing relief.
While Schauer Group can’t control the factors driving commercial premium increases, our advisors can help your company negotiate for and secure the best coverage at the best price. To discuss further, please reach out to your Schauer Group representative.
The full Q2 Commercial Property/Casualty Market Index from The Council is available here.