Recent research from MarketScout showed commercial property and casualty rates increased by 5% in the first quarter of 2023. When broken down by industry, transportation was the only group that saw a quarter-over-quarter increase, up from +7.3% in Q4 2022 to +8% in Q1 2023.
Those with large account premiums (between $250,000 and $1 million) saw a year-over-year increase, from +4% in Q1 2022 to +4.7% in Q1 2023, while small accounts (up to $25,000) increased 4%, medium accounts ($25,001 to $250,000) increased 3.7% and jumbo accounts (over $1 million) increased 4%.
Property topped the list of commercial lines with the heftiest premium increases in Q1 2023 with +9.3%, followed by auto policies, which saw a 7.3% increase.
In May, an S&P Global Market Intelligence analysis showed Progressive led the pack in commercial auto insurance rate hikes in the first quarter of 2023. They reported Progressive and its subsidiaries were approved for 17 rate hikes spanning 15 states to start the year. This led to a total increase during the quarter of $68.1 million in calculated premium for the company.
Progressive’s premium change included a 5.3% increase in Texas, where state regulators approved a total of 58 commercial auto rate hikes across all insurers, totaling $125.7 million in premium change. S&P Global reports other insurers that benefitted from the Texas approvals included American Financial Group’s units under the Great American umbrella, whose subsidiaries received approval for six rate hikes totaling $15.3 million in premium change in the state.
In the slideshow above, we’ll look at which commercial auto insurers finished 2022 at the top, according to the National Association of Insurance Commissioners (NAIC).
