The Council of Insurance Agents and Brokers says commercial P&C pricing increased at a rate of 5.2 percent in the first quarter.
The increase continues a trend. Rates increased 5 percent during the last quarter of 2012.
Data was compiled from a quarterly survey by the CIAB, and points to what one broker called a “Jekyll and Hyde market” of insurers looking for increases at renewals but staying aggressive on new business.
Survey takers say insurers following Superstorm Sandy have tightened underwriting on catastrophe-exposed property on the East Coast.
“Insurers pushed for higher deductibles for named windstorms and flood in the Northeast, especially for insured with claims from Superstorm Sandy,” one broker says.
Carriers are also reported to be lowering limits or excluding flood coverage.
Underwriting guidelines are changing in the Midwest and Southeast due to weather, according to brokers. Wind/hail deductibles have increased, exclusions have been put in place, and tightened underwriting in general has been seen.
According to the survey, workers compensation continued to be a hard line to place, with large price increases and a reduction in capacity. Businesses have been forced into mono-line or alternative markets for coverage, says one broker surveyed.
Ken A. Crerar, CEO of CIAB, says the “upshot is more business is moving to alternative markets.”
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