Insurance rates expected to rise again this year
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Commercial insurance rates are expected to increase across most lines of coverage this year, with many sectors likely still experiencing double-digit hikes, according to a report issued Thursday by Risk Strategies Co.
According to the Boston-based brokerage’s “State of the Market” report, no lines of coverage are expected to see rate decreases, and only a few lines, such as workers compensation and surety, are expected to see flat renewals.
The biggest rate hikes are expected for cyber liability, with increases of 30% or more projected, on top of average 50% increases last year, said Risk Strategies, the trading name of RSC Insurance Brokerage Inc.
Among other major lines, rates for average quality property risks with some catastrophe exposures are expected to rise between 10% and 20%, and unfavorable, high-risk property risks are expected to see rate increases of 25% or more; general liability and auto liability up 5% to 10%; umbrella rates up 10% to 20%; and private company management liability up 10% to 30% and public company management liability up 5% to 30%.
But conditions will likely improve for buyers, Risk Strategies CEO John Mina said in the report.
“Sustained rate increases have attracted new entrants and over time underwriting capacity will expand and rate increases stabilize,” he said.
