Commercial Property Insurance Rates See Continued Increase, Though Pace Slows

Commercial Property Insurance Rates See Continued Increase, Though Pace Slows

| May 09, 2024


Commercial property insurance premiums continued their upward trend in the fourth quarter of 2024, although at a slightly slower pace compared to previous quarters, according to a Q4 Market Survey of the Council of Insurance Agents and Brokers (CIAB). The survey results were reported in a May 2024 Insurance Journal article:25 Straight Quarters of Premium Increases for Commercial Lines: CIAB Survey

Overall commercial property/casualty premiums increased to an average of 7% in Q4, continuing a six-year trend. This represents a slowdown from the 8.1% increase seen in Q3. When looking at commercial property specifically, there was an 11.8% increase in Q4, a continued trend throughout 2023. This is down from highs of 20.4% in Q1 and 18.3% in Q2.

Respondents cited reinsurance costs, natural catastrophe losses, and a decrease in underwriting capacity as reasons for the increases.

The survey also noted insureds'  frustration with rising rates and information requests from insurance carriers. Despite ongoing market changes, some underwriters are reportedly shifting focus towards finding individual account solutions.

Looking Ahead:

While the pace of increase has slowed, commercial property insurance premiums remain on an upward trajectory. Businesses can expect continued focus on risk management and potentially stricter underwriting requirements to obtain coverage.