Report: Premium pricing for P&C lines increasing

Premium pricing for commercial property/casualty lines experienced slight increases during Q1 2018, according to The Council of Insurance Agents & Brokers' (CIAB) Commercial Property/Casualty Market Index Survey. Average premiums across all sized accounts increased by 1.7%, compared to a 0.3% increase in Q4 2017. This marks the second consecutive quarter of increased premiums, following three years of soft market conditions.

"While we find ourselves in the beginning of a transitional market, carriers continued to be aggressive on new business due to excess and alternative capital in the market," said Ken A. Crerar, president/CEO of CIAB.

According to the report, all lines of business experienced some increase in premium pricing, with the exception of Workers' Compensation, which saw a -2.0% decrease. The average increase across all lines of business was 2.2%, compared to 1.7% in Q4 2017.

Despite weathering the historic 2017 natural catastrophe season, the market remained stable due to excess risk transfer capacity from both traditional and nonCaditional capital, resulting in aggressive underwriting, excess capacity, and competitive pricing in the market, noted the report.

According to respondents, the demand for cyber insurance is greater than any other line of business, with 73% of respondents reporting a "somewhat" or "significant" increase in demand for cyber coverage.

Commercial auto remained an industry-wide concern, as rates increased 7.7% in Q1 2018, marking the 27th consecutive quarter of increased commercial auto rates.

Driving organic growth, hiring, and recruiting talent and enhancing the customer experience remain top organizational priorities for respondents' firms. Nearly 80% of respondents listed "driving organic growth" as a top priority for 2018.