Agency E&O Buyers Report Higher Premiums
Fewer agencies reported increases in premium on their agency errors and omissions renewal policies from 2023 to 2024, according to Insurance Journal’s annual Agency E&O survey, which polls buyers of the coverage on pricing and trends on current market conditions.
Some 73.1% of respondents saw an increase in their agency E&O renewal premium in 2024. That’s up from 63.5% of respondents who saw increases in E&O renewal premiums in 2023, and higher than the 70.5% who reported increases in the 2022 survey.
The owners and buyers of agency E&O coverage responding to IJ’s survey see the upward trend on pricing continuing at renewal. The survey found that 69.0% predict another increase at their next renewal. That’s slightly higher from 66.2% in 2023 survey but still up from 68.6% in the 2022 survey.
More than a third (37.7%) of survey respondents said the increase in premium was due to agency growth/expansion/acquisition while another 46.7% said the increase came from a rate increase from the agency’s E&O carrier.
Only 5.7% said the increase was due to the agency’s own claims experience while just 4% reported the increase was due to changes to underwriting risk factors (other than growth). Some 4.1% noted the increase in premium was due to changes in their policy such as higher coverage limits; that’s down from 8.1% who reported higher coverage limits as the reason in the 2023 survey.
As the hard market continues, more agencies reported placing business in the excess and surplus lines market. More than half (52.6%) reported placing more E&S business than one year ago when 47.3% reported placing more E&S business.
This year, 39.2% of respondents reported a recent change to agency E&O policy deductibles. That’s down from 52.7% of agencies reporting changes in the 2023 survey.
Insurance Journal’s Agency E&O Survey collected nearly 200 responses from agency owners and agency E&O buyers nationwide via an online survey in September and early October 2024. Contact Andrea Wells at: awells@insurancejournal.com.