Rates

Carriers also reported premium expansion and improved solvency during the quarter.

The changing reinsurance market dynamics are impacting reinsurers' ability to raise rates.

Property catastrophe accounts with poor loss history are facing rate increases of 20% more, versus 5%-10% rises for non-cat exposed business.

The level of price increases was lower than the 10% rise reported in the fourth quarter of 2020.

With the property casualty industry flush with capital, continuing to hold the line on rate rises will likely be challenging.

The intermediary also warned that inflation headwinds could affect the future cost of claims.

A surge of ransomware and other cyberattacks is driving premiums higher as losses increase, part of a broader trend of hardening across US commercial P&C lines.

Rate increases for all-sized accounts and across all lines of business slowed to 10% in the first quarter, down from 10.7% in Q4, according to recent survey data from the Council of Insurance Agents and Brokers (CIAB).

Competition is intensifying, with increased London market appetite one of the drivers.

Primary D&O policies renewing with the same policy limit received average rate hikes of 18.2%, compared with 26.2% in Q1 2020.

The broker says rates remain low despite a surge in dealmaking towards the end of last year.

Rate increases in the niche market segment remained in the double digits, but the pace of gains was slower than in prior periods.