CIAB survey shows evidence of easing P/C market trading conditions in Q2

Commercial property/casualty premium increases in the second quarter of 2024 were flat or down from the previous quarter for all lines of business – evidence of a shrinking insurance market, according to the Council of Insurance Agents and Brokers (CIAB) quarterly survey .

Premiums for all account sizes rose an average of 5.2 percent in the second quarter, down from an average increase of 7.7 percent in the first quarter, according to CIAB survey results. This was the 27th consecutive quarter of average premium increases, but “signs of softening property and casualty market conditions were evident,” CIAB said.

“In particular, four lines saw lower premiums this quarter: workers’ compensation, cyber, D&O and employment practices liability,” CIAB said.

Workers’ compensation and cyber premiums fell 2.2% and 1.7%, respectively, in the second quarter. Liability of directors and officers fell 1 percent, while employment practices fell 0.1 percent.

For cyber, Q2 marked the first time since the last quarter of 2018 that premiums fell, and the results were a far cry from the 34.2% average premium growth seen for the line in Q4 2021. CIAB said respondents noted “a general feeling that an injection of fresh capital and competition has pushed carriers to compromise on premium increases.” Forty-six percent of survey participants reported an increase in cyber capability in Q2.

Q2 was the first since Q4 2022 that a line of business other than commercial property had the largest average growth. That distinction belonged to commercial autos, with an average increase of 9%, outstripping only the 8.9% increase in commercial property.

Despite signs of a weakening market, CIAB said respondents continue to place high premiums and future premium increases as their customers’ top concern.