Insurance rate hikes accelerate in second quarterPosted On: Aug. 24, 2020 2:54 PM CST
Average commercial insurance rate increases hit double digits in the second quarter, with large accounts seeing the biggest rise, according to the latest pricing survey released by the Council of Insurance Agents & Brokers on Monday.
The average increase across all lines was 10.8% in the second quarter, compared with 9.3% in the first quarter, and rates for large accounts rose 14.2%, compared with 12.6% in the prior quarter.
Medium-sized accounts saw an 11% increase and small accounts saw a 7.3% rise in rates in the second quarter.
Rates for umbrella liability coverage saw the biggest increases among the five major lines tracked by the CIAB with prices rising 20% in the second quarter. Commercial property rates rose 13.3%, commercial auto rates increased 9.6%, general liability rates rose 6.8%, and even workers compensation, which has seen declines each quarter for the past five years, saw rates increase 0.7%.
In other lines tracked by the CIAB, directors and officers liability insurance rates rose 16.8% during the second quarter, which was down sharply from the 32.4% increases reported in the first quarter, business interruption rates rose 9.7%, also down sharply from the first quarter increases, employment practices liability rates rose 9.4%, construction insurance rates increased 6.8%, and cyber liability rates rose 6.5%.