Liability rates still rising, property prices flat: Report

Commercial insurance rates varied significantly by line in the second quarter, with property and cyber liability renewals seeing little change from last year while rates for several other liability lines continued to rise, according to a report from The Baldwin Group.

Umbrella liability saw the sharpest increase, at 9.7% for the quarter, the Tampa, Florida-based brokerage said. Higher court awards are contributing to the rate increases, and even accounts with moderate exposures face higher minimum premiums and reduced limits, according to the report, released Tuesday.

“Many insurers are re-underwriting entire programs before offering renewal terms, and pricing continues to climb,” Baldwin said.

Commercial auto rates rose 8.7% because of higher losses driven by litigation trends, higher repair costs and labor shortages.

In other lines, general liability rates rose 5.6%, management and professional liability was up 2.7%, property and cyber liability rates were flat, and workers compensation was down 0.5%.

“The workers compensation market continues to deliver consistent profitability for insurers and rate stability for buyers. However, early signals point to a shifting landscape as medical inflation, evolving workforce dynamics, and changing claims behaviors reshape long-term expectations,” Baldwin said.