Commercial property insurance pricing is trending down while casualty rates are turning up, according to a report Wednesday from Lockton Cos. Inc. looking at fourth-quarter pricing trends.
Directors and officers coverage pricing will remain “competitive” as will that for cyber insurance, despite “concerns” about claims, the report said.
Noncatastrophe exposed property is forecast to see rates changes ranging from a 5% decrease to a 5% increase. Catastrophe exposed and “challenged occupancies” are likely to see a range from a 10% rate decrease to a 10% rate increase, the report said.
Claims costs and some adverse development continue to concern casualty and liability markets, where general liability and excess coverages are both forecast to see 5% to 10% increases.
Auto liability is expected to have a 10% to 15% increase in rates, while lead umbrella coverage rates are forecast to rise 5% to 15%, the report said.
The workers compensation market “remains favorable to buyers” with guaranteed cost plans forecast to see a 5% rate decrease to flat renewals and loss-sensitive plans forecast to see a 3% rate decrease to a 2% rate increase.
“While third-party liability remains a troubling outlier, ample capacity, greater competition, and strong reinsurance support are driving rates down for property, workers compensation, directors and officers liability, and cyber insurance,” Lockton said in a statement with the report.
