The US market is hardening as property/casualty, professional and personal rates have increased, according to MarketScout and the Council of Insurance Agents & Brokers (CIAB).

Small, medium and large account pricing rose an average of 4.4% in first quarter this year, according to the CIAB’s quarterly Commercial P/C Market Index Survey. This compares with a 2.7% rise last quarter and a 2.9% fall in the first quarter last year.

Council CEO Ken Crerar says although it is difficult to predict length and severity, the market has turned.

“We’ve been cautious up to now about declaring a market turn, but I think it’s reasonable to say that the market has made a hard turn after two quarters of price increases and tighter underwriting,” he said.

The rising cost of natural disasters affected insurer pricing, particularly for coastal properties, while workers’ compensation toughened as carriers raised prices or rejected business, CIAB says.

Demand for insurance was up in the first quarter, according to 59% of survey respondents.

The issue that keeps brokers awake at night is attracting new talent to the business, the survey found.

Insurance exchange MarketScout’s April report also found pricing increases.

Commercial property, casualty and professional lines increased 3% in April compared with a year ago.

Workers’ compensation and property rates increased the most in April – 4% – the same as the month before. General liability and business owner policy rates rose 3%.

Accounts with premiums over $US1 million ($990,460) increased 2% and those with premiums under $US1 million increased 3%.

Personal lines rose 1% in April compared with a year earlier. Homeowners’ and motor vehicle rates increased 1% and 2% respectively.

MarketScout CEO Richard Kerr says he is monitoring homeowners’ policies in coastal areas as hurricane season approaches.

“Rates in wind-exposed areas are up 5-12% as many of the admitted markets are either restricting their capacity or requiring higher deductibles and wind mitigation construction,” he said.

“The national composite homeowners’ rate is up only 1% because it includes millions of homes in locations that do not have catastrophe exposure.”