U.S. commercial insurance prices grew again in the third quarter of 2022, according to WTW’s most recent 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 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 5% now in the third quarter of 2022.
Data for nearly all lines continue to indicate significant price increases in the third quarter with the exception of workers compensation and directors & officers liability. CLIPS continues to indicate a slight price reduction for workers compensation. Directors & officers liability saw another quarter price decrease, larger than prior quarter. Package CMP/BOP saw a slightly larger price increase than last quarter, in contrast to all other survey lines. The largest price increase still comes from Cyber which was first introduced into the survey in the fourth quarter of 2021 although the volume is much smaller than all other lines. The second largest price increase continued to come from excess/umbrella liability which saw significantly accelerating prices over the previous thirteen quarters and experienced a slightly lower increase than the prior quarter although still a close to double-digit price increase. Commercial auto saw reported price increases near or above double digits for the twentieth consecutive quarter.
When comparing account sizes, reported price changes were all below double digits including specialty lines which now has the smallest price increase.
|U.S. commercial insurance prices showed an aggregate increase of 5%