Average second-quarter commercial rate increases ranged from 1.8% to 6.5%, but pricing varied significantly by line and region, with some renewals showing 20% decreases and others 15% increases, according to a report issued Wednesday by Hub.
Some property insurance buyers have seen big decreases as new capacity has entered the market, but commercial auto and excess liability pricing remains tough due to ongoing concerns over replacement part costs and rising court awards, said Mary-Beth Hahn, Hub’s complex risk practice leader, based in Summit, New Jersey.
Commercial property rates ranged from 15% decreases to 5% increases, and catastrophe property rates were down flat to down 20%, the report said.
Increases in liability lines varied with commercial auto up 5% to 15%, umbrella and excess up 5% to 10%, and general liability flat to up 10%.
Private directors and officers liability rates ranged from down 5% to up 5% and public D&O rates were flat to down 10%.
Cyber liability was flat to 5% down and workers compensation ranged from down 5% to up 5%.
With rates easing in some areas, some buyers are using premium savings to buy higher limits in other lines, Ms. Hahn said in an interview.
“Particularly on cyber, some clients may not have purchased it in the past, or maybe they have just a small limit. We’re saying, ‘Why don’t you re-evaluate possible limits?’” she said.
In auto liability, though, buyers are facing increased scrutiny from underwriters, Ms. Hahn said.
With conditions unlikely to change much in most lines over the next few months, barring major windstorm losses, buyers should prepare early for their next renewal, she said.
“Maximize coverage where you can, take a fresh look at the lines like property that had the increases in the past and make sure your coverages are appropriate. Then make sure that the story of the company going into the market is the best that it can be,” she said.