As the insurance landscape evolves, many trucking companies face the challenge of understanding and adapting to shifting market conditions. Our Q1 Transportation Market Report sheds light on the latest trends in premium pricing and market dynamics while presenting a concise summary of insights for business executives seeking to make informed decisions in an increasingly complex insurance environment.
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REPORT SUMMARY
While premium increases moderated across most lines in Q1 2023, overall premiums continued their upward trend for the 22nd consecutive quarter. The data shows an average increase of 8.8% across all account sizes, slightly up from the previous quarter’s 8.0% increase.
Encouragingly, the cyber insurance segment demonstrated signs of stabilization, with premiums rising by an average of 8.4%. This marked a significant decrease from the previous quarter’s 15.0% increase and a substantial drop from the last year’s surge of 20%. The decline in reported cyber claims since Q1 2022 suggests that insurance carriers may have responded to fewer losses by reducing premium increases. This positive trend can be attributed to the industry’s concerted efforts in promoting more effective cyber risk management strategies for insureds.
In contrast, the commercial property market experienced a notable spike in premiums, soaring by 20.4% in Q1 2023. This surge represents the first time since 2001 that the line has witnessed an increase of over 20%. Inflation, rising repair costs, severe natural catastrophes like Hurricane Ian, and supply chain disruptions emerged as key drivers behind the elevated property insurance costs.
The property insurance segment also underwent significant underwriting changes, with carriers implementing alterations in terms and conditions, imposing higher deductibles, introducing more exclusions, and reducing coverage. These adjustments reflect the industry’s response to evolving property loss trends.
As an experienced transportation insurance broker, we possess the knowledge, expertise, and industry connections to help you dive deeper into these strategies and help make informed decisions regarding your insurance needs.
Contact Cottingham & Butler today to discuss solutions and maximize the value of your insurance investments.