U.S. commercial insurance prices grew again in the fourth quarter of 2021, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the fourth 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 and fourth quarters of 2021.
Data for nearly all lines continue to indicate significant price increases in the 4th quarter. The largest price increase comes from professional liability which saw significantly accelerating prices over the previous eight 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 eleven quarters and peaked in 2020. Both still reported significant price increases though lower than those in the 3rd quarter of 2021. Commercial auto saw reported price increases near or above double digits for the seventeenth consecutive quarter, while property coverage accelerated again and saw near or above double digit increases for the eleventh 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 twelve quarters. Cyber was first introduced in the survey and showed a significant rate increase although the volume is much smaller than all other lines.
When comparing account sizes, similar to the prior quarter reported price changes were all below double digits except for specialty lines.
* The second quarter 2021 price change has been revised from the previously reported change of just above 6%.
|U.S. commercial insurance prices showed an increase similar to the prior quarter