Commercial Lines Insurance Pricing Survey 2023 Q1
NEW YORK, June 13, 2023 — U.S. commercial insurance prices have continued to increase in the first quarter of 2023, according to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS). The quarterly survey compared insurance prices on policies underwritten during the first quarter of 2023 to those charged for the same coverage throughout the same quarter in 2022. The aggregate commercial price change reported by carriers was an increase of 5.6%, up from the rate of 4.8% in the previous quarter (Q4’22).
“Rates continued to harden across nearly all lines of coverage in the first quarter, with an aggregate price increase higher than in the prior quarter.”
Yi Jing | Director, Insurance Consulting and Technology, WTW
The coverage area that experienced the greatest price increase was Commercial Property with a double-digit increase, trending higher than in the prior quarter. Another line demonstrating a double-digit increase was Commercial Auto, yet slightly lower than in the prior quarter. Workers’ Compensation continued to show a price decrease, as well as Directors & Officers Liability, where both continued to display a similar price decrease as exhibited in the prior quarter.
“Rates continued to harden across nearly all lines of coverage in the first quarter, with an aggregate price increase higher than in the prior quarter, driven primarily by the double-digit increase from Commercial Property, constrained by the impact of recent high inflation,” said Yi Jing, Director, Insurance Consulting and Technology, WTW.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
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 first quarter of 2023 with the prices charged for the same coverage during the same quarter of 2022. For this most recent survey, 43 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
