The Council of Insurance Agents and Brokers sayscommercial P&C pricing increased at a rate of 5.2 percent inthe first quarter.
The increase continues a trend. Rates increased 5 percent duringthe last quarter of 2012.
|Data was compiled from a quarterly survey by the CIAB, andpoints to what one broker called a “Jekyll and Hyde market” ofinsurers looking for increases at renewals but staying aggressiveon new business.
|Survey takers say insurers following Superstorm Sandy havetightened underwriting on catastrophe-exposed property on the EastCoast.
|“Insurers pushed for higher deductibles for named windstorms andflood in the Northeast, especially for insured with claims fromSuperstorm Sandy,” one broker says.
|Carriers are also reported to be lowering limits or excludingflood coverage.
|Underwriting guidelines are changing in the Midwest andSoutheast due to weather, according to brokers. Wind/haildeductibles have increased, exclusions have been put in place, andtightened underwriting in general has been seen.
|According to the survey, workers compensation continued to be ahard line to place, with large price increases and a reduction incapacity. Businesses have been forced into mono-line or alternativemarkets for coverage, says one broker surveyed.
|Ken A. Crerar, CEO of CIAB, says the “upshot is more business ismoving to alternative markets.”
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