U.S. commercial insurance prices grew again in the third quarter of 2021, according to Willis Towers Watson’s most recent 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 grew by over 6% for the first quarter of 2020, then spiked upward to nearly and above 10% in the second through the fourth quarters of 2020, and then declined to just below 8% in the first and second quarters* of 2021, and now just above 7% in the third quarter of 2021.
Data for nearly all lines continue to indicate significant price increases in the 3rd quarter. The largest price increase comes from professional liability which saw significantly accelerating prices over the previous seven quarters. Both excess/umbrella liability and directors & officers liability data had been indicating modest price increases for all of 2018, with sharp adjustments upward in the past ten quarters and peaked in 2020. Both still reported significant price increases though lower than those in the 2nd quarter of 2021. Commercial auto saw reported price increases near or above double digits for the sixteenth consecutive quarter, while property coverage accelerated again and saw near or above double digit increases for the tenth consecutive quarter. CLIPS continues to indicate a slight price reduction for workers compensation, in contrast to nearly all other surveyed lines, though the decreases have tempered somewhat for each of the last eleven quarters.
When comparing account sizes, reported price changes were all below double digits except for specialty lines.
then spiked upward to nearly and above 10% in the second through the fourth quarters of 2020, and then declined to just below 8% in the first and second quarters* of 2021, and now just above 7% in the third quarter of 2021.
*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%.
|Q3 2021 U.S. commercial insurance prices continued increasing but lower than Q2