Commercial insurance premiums rose 8.1% on average in the third quarter, with property rates continuing to surge, but directors and officers liability insurance premiums and workers compensation rates fell, according to the latest report from the Council of Insurance Agents & Brokers.
According to the survey of CIAB members released last week, while rates continued to rise last quarter, the pace of rate hikes slowed from the average 8.9% for accounts that renewed in the second quarter. Medium-sized accounts saw the largest third-quarter average increase at 8.9%, down from 9.8% in the second quarter, while small accounts rose 7.9%, up from 7.2%, and large accounts increased 7.5%, down from 9.7%.
Commercial property continued to see the highest rates hikes among major lines, with premiums rising 17.1%, but down from 18.3% in the prior quarter; commercial auto rates rose 8.8%, down from 10.4%; umbrella rates increased 7.4%, down from 8.1%; general liability rates rose 4.2%, down from 5.2%; and workers compensation premiums fell 2%, compared with a 0.7% decrease.
Among other lines, D&O rates fell 0.3%, the first quarterly decrease reported by the CIAB survey since the start of the hard market in 2017, compared with a 1.6% increase in the second quarter; cyber liability rates were up 1.6%, compared with 3.6%; employment practices liability rates rose 1.8%, compared with 2.2%; and medical malpractice rates were up 2.8%, up a fraction from 2.7%.