Majority of Rates See Slight Increase
The second quarter of 2018 looked much like the first in regard to insurance rate trends. Overall, the average increase dipped slightly compared to Q1, though increases in commercial auto premium (8.2%) managed to creep even higher.
Looking back at premium trends over the last year, Commercial Property has seen the biggest swing in rate changes; averaging over a 2% increase in Q2 2018, compared to a nearly 4% decrease during the same quarter of 2017.
For the third consecutive quarter, all sizes of businesses experienced rate increases. Small businesses, those paying less than $25,000 in premium annually, were the only segment to see premium increases accelerate in Q2, while medium and large businesses saw smaller increases in premium.
Q2 2018 saw the last of the first renewals for property after the devastating natural disasters which occurred in the second half of 2017. As such, these renewals resulted in higher premiums across the board (3%). Businesses with exposures in the Gulf Coast, especially Texas, were hit especially hard; incurring premium increases of up to 100% for habitational property classes.