Rates
-
Average premiums rose 5.8% across all major lines, roughly flat from 5.7% in Q4.
-
YoY Ebitda margins for private brokers declined two points, to 29% in Q1.
-
An overview of Q1 earnings shows upsides, but also plenty of concerns going into the rest of 2024.
-
Only umbrella posted a higher rate increase, while workers’ comp continued to drop.
-
Reserving actions have added pressure to upward pricing.
-
As the industry gathers in San Diego, these are the key discussion points.
-
From here on out, insurers will likely have to rely on the strength of their individual stories.
-
Prices for programs that renewed in both Q1 2023 and Q1 2024 decreased 15%.
-
The carrier is also targeting E&S growth in property brokerage and global specialty.
-
Concern about vague cat modeling language was a theme at a Tuesday workshop.
-
The casualty segment posted $18mn of favorable reserve development across multiple accident years.
-
Property rate increases decelerated to 3% in the quarter.
-
A litany of underwriting and quoting constraints has made it much harder to write business.
-
For workers’ comp, premium renewal rates were down -0.88% compared to -0.64% for Q4.
-
Compared to March, more sources shared accounts of rate declines and oversubscription.
-
Ten states joined in the original suit.
-
Social inflation is driving “cat-type” losses, with an increase in $50mn-plus verdicts.
-
Retentions and coverage could be affected by future adverse claims trends.
-
Given ample capacity and no sharp increase in demand, a market sea change is not expected, barring an unforeseen economic event.
-
WTW said adverse development “is evident” in auto liability lines from 2015 to present.
-
Premium inflation holds, as loss-cost inflation trends continue to moderate.
-
This continues a consecutive quarterly gain of over 6%.
-
Personal lines rate filings are rising, even as some inflation drivers slow.
-
Commercial property rates for February rose 10.77%, up from 10.30% in January.
-
Premiums rose an average of 7% across all lines, down from Q3.
-
Carriers expressed confidence on the line’s ability to withstand medical inflation.
-
Otis could be a $2bn-$3bn loss, but more information is expected before June renewals.
-
CSAA writes over 70% of its business in the Golden State.
-
This follows a record-breaking $63bn of premium and 24.1% growth for 2022.
-
The carrier expects to "get smaller in New Jersey" due to lack of rate adequacy.
-
The broker said softening was emerging in some lines, but cat risks remain challenging.
-
The index’s 2023 peak was Q2, when rates increased 19%.
-
The growth positives of last year are showing signs of fading.
-
Falling rates in finpro and increased competition in property drove the trend.
-
Commercial property pricing rose 11%, while personal auto grew 21.9%.
-
Broker earnings reflect shifting tailwinds, with margins revealing the real winners.