Multiple factors increasing commercial insurance costs

From Nationwide

Costs are rising

Rising frequency and increasing severity: These two conditions affecting commercial property and business auto losses – combined with overall higher prices for goods and services – are spurring increased insurance costs for consumers and insurers.

The supply chain issues and resulting inflation that spiked in 2021 and 2022 caused prices of lumber, steel, and other key building materials to increase dramatically. Meanwhile, chip shortages and other issues slowed production of automobile and parts supplies, leading to supply shortages.

That confluence of factors – which led to the highest inflation in 40 years – has contributed to a hard market for commercial lines insurers.