04 Sep State of the Insurance Market – Q2 2024

Staying informed about the latest trends and demands of the Commercial Business Insurance Industry is essential. Below is a summary of the Q2 market insights: 

Commercial Property premiums are a continued challenge. Ensuring your business is adequately insured is key. 

Premiums across various account sizes continued to trend upward, with an average increase of 5.2%, though this represents a smaller increase than in the previous quarter. The premium increase for medium-sized accounts slowed, dropping from 8.5% to 5.1%

High demand for the following coverages: 

Commercial Property: With a demand of 51%, Commercial Property Insurance is the highest in demand, despite a slight drop from 53% in Q1 to 51% in Q2. This coverage is crucial for safeguarding your business against financial losses from damage or loss of physical assets. For more details on contributing factors, see additional information from Travelers here.

Cyber Insurance: Cyber Insurance is the second most in-demand commercial coverage, though its demand has fallen from 53% in Q1 to 44% in Q2. This coverage is vital as it covers expenses related to investigating and responding to cyber events, notifying affected parties, and restoring compromised data or systems. It may also cover legal costs and settlements associated with third-party liability claims.

Umbrella Insurance: Tied with Commercial Auto as the third most demanded coverage in Q2, Umbrella Insurance has seen a rise in demand to 34%. This coverage provides additional liability protection beyond the limits of your standard policies, covering a wide range of potential claims.

Commercial Auto: Also tied with Umbrella Insurance at 34% demand in Q2, Commercial Auto Insurance is essential for protecting employees driving for work-related purposes, such as transportation and delivery jobs.

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