NEW YORK, December 12, 2022 — U.S. commercial insurance prices have increased again during the third quarter of 2022, according to leading global advisory, broking and solutions company WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the third quarter of 2022 to those charged for the same coverage during the same quarter in 2021. The aggregated commercial price change reported by carriers was an increase of 5%, down slightly from 6% during the previous quarter.
Data for nearly all lines continued to indicate price increases in the third quarter, except for Directors & Officers’ liability (D&O) and Workers Compensation, with D&O showing a larger price decrease than was reported in the previous quarter. The highest rate increases continued to be cyber in the third quarter, however, the increase was much lower than was observed in the previous quarter. When comparing account sizes, reported price changes were all in single digits, with specialty lines demonstrating the smallest price increase.
The moderation of rate increases is clearly evident in the third quarter.”Yi Jing | Director, Insurance Consulting and Technology, WTW
“The moderation of rate increases is clearly evident in the third quarter. Package commercial multi-peril/business owner policy is exceptional with a higher price increase than previous quarter” 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.
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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 2022 with the prices charged for the same coverage during the same quarter of 2021. For this most recent survey, 44 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.