U.S. commercial insurance prices increase again in the first quarter
June 08 2021 - 09:25AM
U.S. commercial insurance prices increased again during the first
quarter of 2021, according to leading global advisory, broking and
solutions company Willis Towers Watson’s Commercial Lines Insurance
Pricing Survey (CLIPS). 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; however, 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.
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. 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,” 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.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global
advisory, broking and solutions company that helps clients around
the world turn risk into a path for growth. With roots dating to
1828, Willis Towers Watson has 45,000 employees serving more than
140 countries and markets. We design and deliver solutions that
manage risk, optimize benefits, cultivate talent, and expand the
power of capital to protect and strengthen institutions and
individuals. Our unique perspective allows us to see the critical
intersections between talent, assets and ideas — the dynamic
formula that drives business performance. Together, we unlock
potential. Learn more at willistowerswatson.com.
About CLIPS
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 first quarter of 2021 with
the prices charged for the same coverage during the same quarter of
2020. For this most recent survey, 39 participating insurers
representing approximately 20% of the U.S. commercial insurance
market (excluding state workers compensation funds) contributed
data.
Media contact
Ileana Feoli: +1 212 309
5504ileana.feoli@willistowerswatson.com
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