Steady Rate Increases for Q2 2022

However, cyber rates surging upward 

US property and casualty rates are stabilizing at a composite increase of 5.91 percent in the second quarter of 2022, virtually matching the rate increases of the first quarter 2022. Cyber rates continue to increase the most at plus 21.3 percent up from plus 19.7 percent in the first quarter of 2022. Umbrella rates moderated slightly by increasing 8.7 percent in the second quarter as compared to an increase of 9.7% in the first quarter of 2022. Medium sized accounts ($25,000 to $250,000 in premium) experienced the largest rate increase in the second quarter of 2022 at plus 7 percent. By industry classification, transportation is still being assessed with the highest rate increases at plus 8.7 percent. Richard Kerr, CEO of MarketScout outlined the current rating environment by noting, “Mother nature and litigation heavily impact rate increases, but as we all know, we can’t realistically control either. Hurricane season is upon us and soon to be followed by wildfire season. If we have big events, the increase in property rates will come quickly.” Kerr further commented on economic cycles which may impact insurance rates, “Inflation can create a need for rate increases, so we may see that impact over the next four quarters. As for rate decreases, it’s possible higher interest rates could provide insurers with additional investment income which could moderate rate decreases, especially on long tail business.” The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States. A summary of the second quarter 2022 rates by coverage, cyber liability, industry class and account size is set forth below.