Willis Towers Watson’s Q2 Commercial Lines Insurance Pricing Survey again indicates significant upward price adjustments for multiple lines.
U.S. commercial insurance prices increased again during the second quarter of 2021, according to Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the second quarter of 2021 to those charged for the same coverage and quarter in 2020 and found the aggregate commercial price change was just above 6%.
Data for nearly all lines indicated significant price increases in the second quarter. Excess/umbrella still showed the largest price increases, while commercial auto, property, and directors’ and officers’ liability increases were also near or above double digits. Workers compensation continued to indicate a slight price reduction, in contrast to nearly all other surveyed lines. Reported price changes for account sizes were all below double-digit increases except for specialty lines.
“The rate of price increases has moderated again in the second quarter while still elevated versus historical norms. This is largely driven by significantly lower price increases for excess/umbrella and directors’ and officers’ liability than previous quarters,” said Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in Willis Towers Watson’s Insurance Marketplace Realities series.