According to WTW, a leading global advisory, broking and solutions company, U.S. commercial insurance prices have continued to increase in the second quarter of 2023, based upon their Commercial Lines Insurance Pricing Survey (CLIPS).
The quarterly survey compares insurance prices on policies underwritten during the second quarter of 2023 to those prices for the same coverage in the same quarter of 2022 for a year-over-year comparison. The commercial lines insurance price change reported by carriers participating in the survey presented an overall increase of 6.1%, a slight increase from the previous quarter (Q1 2023), which reported an increase of 5.6%.
“Rates continued to harden across nearly all commercial lines of coverage in the second quarter.”
~ Yi Jing | Director, Insurance Consulting and Technology, WTW.
The coverage area with the greatest price increase was commercial property, which showed another quarter of double-digit increase, even slightly higher than the prior quarter. Data for nearly all lines of coverage continued to show price increases throughout the second quarter, where Commercial Auto and Excess/Umbrella Liability also demonstrated near double-digit increases. Workers’ Compensation maintained a trend of price decreases, similar to prior quarters, while Directors & Officers Liability (D&O) and Cyber also sustained price decreases, at even greater rates than those in the prior quarter.
“Rates continued to harden across nearly all commercial lines of coverage in the second quarter. Commercial Property, which had a significant double-digit increase, was the main driver of the aggregate price increase of 6.1%, compared with the prior 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 for the upcoming quarter can be found in WTW’s Insurance Marketplace Realities series.
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