NEW YORK, 13 March, 2023 — U.S. commercial insurance prices have continued to increase in the fourth quarter of 2022, according to WTW, a leading global advisory, broking and solutions company within their Commercial Lines Insurance Pricing Survey (CLIPS). The quarterly survey compared insurance prices on policies underwritten during the fourth quarter of 2022 to those charged for the same coverage throughout the same quarter in 2021. The amassed commercial price change reported by carriers was an increase of 4.8%, down somewhat from the rate of 5.2% in the previous quarter (Q3’22).
The coverage area that experienced the greatest price reduction was Directors & Officers’ liability (D&O), with a slightly larger drop than the prior quarter. Data for nearly for all lines of coverage continued to show price increases throughout the fourth quarter, with a general rate of +4.8%, while the only area demonstrating a double-digit increase was Commercial Auto, slightly higher than prior quarter. Commercial Property had the second-highest rate increase and Workers’ Compensation continued to have price decrease.
Rates continued to harden across nearly all lines of coverage in the fourth quarter however at a slower pace.”Yi Jing | Director, Insurance Consulting and Technology, WTW
“Rates continued to harden across nearly all lines of coverage in the fourth quarter however at a slower pace. While the average change still showed an increase [of 4.8%], overall market tempering demonstrates a trend of sustained market stabilization.” 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 fourth 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.