National Mar 16, 2018

2018 PIA Market Trends Survey results

PIA concluded its five-state 2018 Market Trends Survey Connecticut, New Hampshire, New Jersey, New York and Vermont. This survey, in which 117 insurance professionals participated, obtains information as to whether specific products are seeing a price increase or decrease. Conducted every year since 2012—after it was renovated from the associations’ original Hard Market Survey of the early 2000s—it also captures information regarding the level of underwriting agents are seeing by their carriers and changes in remarketing efforts, nonrenewals and business written through wholesalers. The survey, which concluded at the end of January 2018 and reflects 2017 data, shows that the market is hardening, albeit slowly and slightly as compared to the results from the previous year’s survey.

In the new business categories of personal auto, homeowners and commercial property, the 6-10 percent range saw the most increases and decreases across the board. For personal auto, new business, there was an upward trend over the past three years in the 6-10 percent range: 61 percent of survey respondents reported premium price increases or decreases in that range this year, compared to 60 percent last year and 55 percent the year before. Homeowners, new business also had an increase in the 6-10 percent range, of 6 percent, from 43 percent last year to 49 percent this year. For commercial property, new business, the most premium price increase or decrease was also in the 6-10 percent range, but it was a slight drop instead, from 41 percent last year to 38 percent this year.

The biggest change in any category in the survey was a 9 percent upward swing in the commercial property, renewals category, from 45 percent last year to 54 percent this year, which again came in at the 6-10 percent range. New business for commercial liability had the least fluctuation for the second year in a row, and renewals for commercial liability showed only a 1 percent change from last year: a slight increase, again in the 6-10 percent range.

Remarketing efforts, commercial lines showed an overall decrease in those who are moving larger amounts of their business: this year, 16 percent of respondents indicated that they were moving less than 5 percent of their book of business, compared to only 10 percent in that range last year. This year’s survey indicated a more stable approach for underwriting, as compared to the “loosening” the results showed last year. Survey respondents reported no change in nonrenewals, and business written through wholesalers showed little increases or decreases. 

Overall, the 2018 Market Trends Survey indicates that changes in premium prices are proceeding at a snail’s pace. For the full results, see the May issue of PIA magazine.