CIAB: Commercial P/C Premiums Increase 7.7% in Q1 2024 (2024)

FAQs

CIAB: Commercial P/C Premiums Increase 7.7% in Q1 2024? ›

PREMIUM INCREASES FLAT TO DOWN, CIAB Q1 2024 P/C MARKET SURVEY SHOWS. WASHINGTON, D.C. – Premium increase moderation continued this quarter, with premiums across all account sizes increasing by 7.7%, slightly up from the previous quarter's 7.0%.

For the first quarter of 2024, 10.1% was the average commercial property premium increase. While the average increase was lower than last quarter, 10.1% is still the highest of all lines.

The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.

Typically, insurance premiums for commercial properties are set by multiplying the value of the building and its contents by a value that correlates to level of risk. Most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure.

The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $174.70 in 2024, an increase of $9.80 from $164.90 in 2023.

Premium Adjustment Percentage for 2024

Using this formula, the premium adjustment percentage for the 2024 benefit year is 1.4899877401 ($7,292/$4,894), which represents an increase in ESI premiums of approximately 48.9 percent over the period from 2013 to 2023.

Why are insurance prices out of control? It's a combination of bad luck and bad policy. California's vulnerability to natural disasters like wildfires exacerbates the issue. But rising retail theft is also driving up costs, leaving businesses in a lurch.

Premium = (Risk Factor * Sum Insured) / Coverage Period

In this formula: Risk Factor: Risk associated with the insured item or individual is usually expressed as a percentage. Sum Insured: the total amount of coverage required. Coverage Period: the duration for which the insurance coverage is valid.

So, it's no surprise that many entrepreneurs find themselves wondering if their business insurance tax deductible. The answer is generally yes. The Internal Revenue Service views some insurance premiums as a cost of doing business and may accept them as tax deductions.

This updated analysis of insurers' preliminary rate filings shows that ACA Marketplace insurers are requesting a median premium increase of 7% for 2025, similar to the 6% premium increase filed for 2024.

Are insurance companies increasing premiums? ›

According to the Bureau of Labor Statistics' consumer price index, auto insurance rates increased by an average of 17.8% between July 2022 and July 2023.

Yes, health insurance premiums do tend to increase every year, although nominally. The factors that affect the increase range from growing age that can cause deterioration in health, health care history or any detected diseases, previous claim history and inflation in the healthcare industry.

If your building is determined to be in a state of disrepair or otherwise more likely to experience a claim-triggering event due to its condition, your commercial property insurance rate will likely be higher.