Report highlights the falling premiums in the commercial insurance sector
Commercial insurance rates have continued to drop for the second quarter of this year, according to a report from the Council of Insurance Agents & Brokers. The report is released every quarter and shows that premiums have continued to fall by an average of 3.3%, with large accounts seeing a decrease of 5.2%. Some sectors have seen an increase in premiums, however, such as the flood, commercial auto, and cyber liability sectors.
Cyber liability is growing in popularity
Commercial property, general liability, and workers compensation were down throughout all regions examined by the report. Meanwhile, cyber liability is seeing an increase in premiums. More businesses are becoming concerned with the risks they face in the digital world and are seeking out coverage that will protect them from these risks. As a result, cyber insurance is gaining more prominence and premiums are on the rise. The adoption of cyber insurance coverage is expected to continue well into the future, as more businesses begin participating in the digital space.
$1 trillion in merger and acquisition activity has been recorded in the US
The report notes that one of the highlights of this quarter was the increase in mergers and acquisitions. According to the report, there was more than $1 trillion worth of merger and acquisition activity in the United States in the first six months of this year. This is the highest level of activity that has ever been recording in any nation and companies are beginning to take advantage of low interest rates and an unprecedented level of financial solvency within the commercial insurance industry.
Commercial insurance rates have dropped for the second consecutive quarter
As commercial insurance rates continue to drop, those with commercial coverage are likely to see some financial benefits. Notably, however, flood insurance continues to grow more costly in the United States, and the lack of a private market for this coverage may be playing a role in perpetuating this trend. Commercial auto insurance coverage premiums are also on the rise.