Impact of Hurricanes Helene and Milton Expected in Fourth Quarter
The commercial insurance sector saw a composite rate increase of 3.8% in the third quarter of 2024. While insurers anticipated significant impacts from Hurricane Helene, most of the damage appears to be flood-related, with many insureds choosing not to purchase flood coverage. Though industry losses are expected to reach in excess of 10 billion dollars, the overall impact on insurers could have been far worse.
One noteworthy outcome of Hurricane Helene may be its effect on professional liability for insurance agents. Agents may now face scrutiny over whether they offered flood insurance to their clients and whether their clients formally declined such coverage.
“As of this report, Hurricane Milton is on a direct trajectory toward Florida, with potential landfall predicted as a Category 3 or 4 storm,” says Richard Kerr, CEO of Novatae. “Depending on its strength and where it makes landfall, Milton could become one of the most significant insured property catastrophe events in recent years.”
Despite these looming threats, the national composite rate for property insurance increased by 5.7% in the third quarter. Commercial auto and transportation risks saw the highest rate increases, climbing 7.3%.
Risk & Insurance Education Alliance conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
| A summary of the third quarter 2024 rates by coverage, cyber liability, industry class and account size is set forth below. |
| By Coverage Class | |
| Commercial Property | Up 5.7% |
| Business Interruption | Up 5% |
| BOP | Up 3.3% |
| Inland Marine | Up 3% |
| General Liability | Up 4.3% |
| Umbrella/Excess | Up 4.3% |
| Commercial Auto | Up 7.3% |
| Workers’ Compensation | Flat 0% |
| Professional Liability | Up 3.3% |
| D&O Liability | Up 3.3% |
| EPLI | Up 1.3% |
| Fiduciary | Up 1% |
| Crime | Up 2% |
| Surety | Up 1.3% |
