The Council of Insurance coverage Brokers & Brokers’ This fall 2023 survey reveals a slowdown in business property/casualty insurance coverage premium will increase throughout the board, regardless of continued market challenges.

The survey of CIAB member companies confirmed a mean premium enhance of seven.0% within the fourth quarter throughout all account sizes, a lower from the 8.1% enhance within the earlier quarter. This marks the twenty fifth quarter of consecutive will increase, albeit at a slower tempo. Notably, cyber premiums and D&O noticed minimal will increase of 0.7% and 0.1% respectively.

Business property premium will increase, whereas nonetheless the very best amongst all traces, noticed a big drop to 11.8% in This fall from 17.1% in Q3. This was attributed to ongoing points equivalent to reinsurance affordability and availability, elevated pure disaster losses, and inflation. These elements led to provider warning in deploying underwriting capability for business property, making it a big problem for brokers throughout placement.

The CIAB survey additionally highlighted the affect of those market situations on brokers’ purchasers. About 62% of business P/C purchasers reportedly skilled price fatigue, a lower from the earlier quarter’s 70%. Nonetheless, 55% felt burdened by provider requests for info, a rise from 45% within the final quarter. Moreover, 45% of purchasers expressed some degree of distrust for the P/C insurance coverage business, a slight enhance from the earlier quarter’s 42%.

“Underwriting requests and wishes continued to vary,” defined one respondent. “Shoppers will make threat enhancements, particularly in property and cyber after which the subsequent yr there are extra necessities…. Consequently, some really feel they’re chasing a endless system the place they must make enhancements to acquire protection after which are hit financially each with enhancements and premiums.”

In response to those difficult situations, enhancing the shopper expertise has grow to be a prime precedence for brokers in 2024. Greater than half of the respondents (52%) named it as considered one of their top-three priorities. Brokers hope to leverage AI to streamline buyer interactions and enhance consumer and worker entry to information, aiming to serve purchasers “when, how, and the place they want.” This strategic give attention to buyer expertise is seen as essential for consumer retention within the present price setting.

“Retaining enterprise is all the time key, however harder than ever on this market. Shoppers are extra doubtless to take a look at different choices together with different brokers. We’re searching for extra individuals and higher processes to maintain servicing our purchasers in the way in which they’ve come to anticipate,” mentioned one respondent from a big Southeastern agency.

Entry the total report right here. &