US commercial insurance prices increased again during the first quarter of 2021, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS) by broker Willis Towers Watson (WTW).
The survey compared prices charged on policies underwritten during the first quarter of 2021 to those charged for the same coverage and quarter in 2020 and found the aggregate commercial price increase was just below 8%.
Data for nearly all lines indicated significant price increases in the first quarter, although it’s worth noting that the increases were lower than those reported in each of the previous three quarters.
Excess/umbrella and directors’ and officers’ liability still showed the largest price increases, while commercial auto and property price increases were also near or above double digits.
WTW also found that workers compensation continued to indicate a slight price reduction, in contrast to nearly all other surveyed lines.
Reported price changes for account sizes were more muted for small accounts, below double digits for mid-market accounts, and above double digits for large accounts and specialty lines.
“The rate of price increases has moderated fairly significantly, all while still being elevated versus historical norms,” said Yi Jing, director, Insurance Consulting and Technology at WTW.
“This is evident by the absolute value of the movement from the fourth quarter of last year to now, which is one of the biggest one-quarter movements we’ve seen in survey history.”
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation.