The decline in commercial property insurance premiums in the second quarter of 2024 signals a shift in the industry’s trajectory, breaking a seven-year streak of steady rate hikes. According to a new report from the Insurance Information Institute, this change in premiums reflects the beginning of a new paradigm in pricing, driven by evolving market dynamics and risk recalibration.
The institute found that while direct premiums written have grown at a slower pace year-over-year, insurers have benefited from improving underwriting margins. This trend reflects a market adapting to price risk exposure more effectively. Still, the overall relief for policyholders is tempered by uneven conditions, with some property types continuing to face significant challenges.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
