Broker Check

Property Insurance Rates Continue to Rise

January 16, 2023

According to an article by Claire Wilkinson in Business Insurance, commercial insurance buyers can expect higher property insurance premiums this year. For those exposed to catastrophes or with losses, those increases could be 25% or higher, possibly to 150%.

Property catastrophe reinsurance rates have increased by 45% to 100% as of January 1, according to Gallagher Re. This comes after 20 consecutive quarters of increasing rates.

The market will be hardest for insureds with poor loss history, higher risk exposure, or outstanding loss control recommendations. Insureds exposed to catastrophes but with minimal losses and good risk quality will see increases of 15% to 50%. Rates for good risks in non-catastrophic regions will rise 5% to 10%. High quality accounts will see little or no rate change.

Insurance buyers can mitigate increased costs by reducing limits, higher retentions or by more attention to loss control.