Aggregate price change reported was just above 7%
ARLINGTON, Va., Dec. 08, 2021 (GLOBE NEWSWIRE) -- U.S. commercial insurance prices grew again in the third quarter of 2021, according to Willis Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the third quarter of 2021 to those charged for the same coverage during the same quarter in 2020. The aggregate commercial price change reported by carriers was just above 7% in the third quarter of 2021 after being just below 8% in the first and second quarters.*
Data for nearly all lines continue to indicate significant price increases in the third quarter. Professional liability, which had been significantly accelerating over the previous seven quarters, showed the largest increase. Excess/umbrella liability and directors’ and officers’ liability reported significant price increases, though lower than those in the second quarter of 2021. Though the decreases have tempered somewhat, CLIPS continues to indicate a slight price reduction for workers compensation, in contrast with nearly all other surveyed lines. When comparing account sizes, reported price changes were all below double digits except for specialty lines.
“The aggregate price increases continue to be strong in the third quarter, though slightly lower than the previous quarter, and the rate of price increases has moderated for most lines,” said Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in Willis Towers Watson’s Insurance Marketplace Realities series.
*Correction: In the second quarter of 2021, we reported the aggregate commercial price change as just above 6%. The revised figure is just under 8%.
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CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the third quarter of 2021 with the prices charged for the same coverage during the same quarter of 2020. For this most recent survey, 38 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
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