U.S. commercial insurance prices grew again in the first quarter of 2023, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the first quarter of 2023 to those charged for the same coverage during the same quarter in 2022. The aggregate commercial price change reported by carriers spiked upward to nearly and above 10% in the second through the fourth quarters of 2020, and since then has started declining to just below 5% in the fourth quarter of 2022 and now increased back to above 5% in the first quarter of 2023.
Data for nearly all lines indicate moderate to significant price increases in the first quarter with the exception of workers compensation, directors' and officers' liability, and cyber. CLIPS continues to indicate a slight price reduction for workers compensation. Directors' and officers' liability saw another quarter of price decrease, similar to the prior quarter. Both commercial property and commercial auto liability saw double-digit price increases, in contrast with all other survey lines. Commercial property saw the largest increase. Commercial auto saw reported price increases near or above double digits for the 22nd consecutive quarter. The third largest price increase came from excess/umbrella liability, which saw significantly accelerating prices over the previous 15 quarters and experienced a slightly higher increase than the prior quarter with a price increase close to double digits. Cyber, which was first introduced into the survey in the fourth quarter of 2021 with the volume being much smaller than all other lines, continued to show a slowdown in its price change.
When comparing account sizes, reported price changes were all below double digits, including specialty lines, which is essentially flat driven by directors' and officers' liability.
|U.S. commercial insurance prices showed an aggregate increase above 5%