Commercial insurance price hikes to continue in most lines
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Commercial insurance rates will continue to rise mainly in the single and low double digits across major commercial insurance lines, with some isolated declines, according to a report Wednesday from Risk Strategies Inc.
Casualty general liability rates are expected to rise 1% to 10%, with umbrella casualty pegged in the same range.
Commercial property exposure of good quality with no catastrophe exposure are expected to see hikes of some 10%, while less favorable or catastrophe-exposed property could see increases as high as 50% or more.
Cyber rates are forecast to rise 10% to 15% while aviation may see increases from 5% to 25%, according to the report. After several years of soaring and uneven rates, the cannabis sector is set to see increases of 5% to 15%, except in directors and officers cover, which is seen as flat or even down 10%.
Management liability, meanwhile, is expected to see rate declines of 5% to 15% for private companies and 5% to 25% at public companies for primary cover; and declines of 10% to 30% for both private and public companies.
The transportation sector stands out as expecting some of the largest increases, up 20% to 25% in auto liability; up 20% to 25% for physical damage; and jumps of 25% to 100% in transportation excess liability.
The report added that areas of volatility such as inflation and rising interest rates are leading to uncertainty about future prices.
