August 24, 2020
The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q2 2020 (April 1 – June 30):
- The market continued to harden in Q2 2020, with premiums increasing by an average of 10.8% across allsized accounts, marking the 11th consecutive quarter of increased premium pricing across all-sized accounts. As with the previous quarter, large and medium-sized accounts were hardest hit, recording average increases of 14.2% and 11%, respectively, while small accounts experienced an average increase of 7.3%.
- All lines of business, including Workers Compensation, experienced slight-to-significant premium increases in Q2 2020. Umbrella and D&O premiums increased by far the most in Q1 2020, at 20.0% and 16.8%, respectively. Notably, this marked the end of 21 quarters of decreasing prices for Workers Compensation.
- While premium pricing for Commercial Auto continued to increase in Q2 2020, at 9.6%, the same as last quarter, the number of claims for that line continued to fall. Only 14% of respondents said they saw an increase in Commercial Auto claims, while vastly more (55%) said that they saw a decrease in claims.
- The impact of COVID-19 was even more apparent in Q2 2020 than in Q1. Ninety-four (94%) percent of respondents said they saw an increase in Business Interruption claims, and the line saw an average premium increase of 9.7%.
The Council relies on data from broker members to create this report. To participate in future surveys or for questions/comments, please contact The Council’s Zach West at Zach.West@ciab.com.