US P&C hard market takes fresh surge in 19th quarter of rate gain: CIAB

US P&C premium growth accelerated in the second quarter, chiefly on large accounts, putting paid to six straight quarters of moderation in what goes down as the nineteenth consecutive quarter of rate gains, a quarterly survey of members at the  Council of Insurance Agents & Brokers (CIAB) has shown.

Mark average P&C premium growth at 7.1% in Q1 across the full spectrum of account sizes, up from a 6.6% growth rate in Q1.

But large accounts brought all of the aggregate gain. The rate of premium growth for small and mid-sized accounts was flat from Q1, versus a 1.3 percentage point acceleration for large accounts to 7.5% premium growth.

"Nevertheless, respondents agreed that the market continued to stabilize in Q2 2022," authors wrote, citing respondent talk of "some price moderation" and "additional competition for desirable accounts."

Cyber continues to "pose problems" with prices up by more than 25% for the fifth consecutive quarter amid higher deductibles, tightened limits and ever-increasing scrutiny.

Beyond cyber, changes in rate dynamics were said to be comparatively mild versus prior quarterly moves. Authors cited "signs of pricing moderation" for lines like flood, medical malpractice, and surety bonds even while cyber and umbrella saw continued upward pressure on prices.

Amongst accelerating lines, the pace of average rate growth rose 1.3 pps to 7.2% in Q2 for commercial auto, by 0.8 pps for umbrella policies to 11.3% and by 0.8 pps to 4.7% for general liability.

Workers’ comp remains the stand-out segment with negative rate growth, down 0.7 pps to a 1.2% annual decline.

Inflation is taking a toll, especially in commercial auto and commercial property. Insurers are pressing clients for increases in both rate and property valuation.

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