Certain U.S. commercial insurance segments saw robust price increases in the 2021 third quarter, but the sector overall continued to see a slowing and steady moderation in rate hikes, according to a new report.
Willis Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS), determined an aggregate price increase just above 7 percent for Q3, after hitting just below 8 percent in the 2021 first and second quarters.
Professional liability generated the largest increase, Willis Towers Watson said.
Excess/umbrella liability and directors and officers liability reported significant price increases, though they were lower than those in the 2021 second quarter.
Price changes achieved single digit increases except for specialty lines, according to the report.
Once again, workers compensation is the outlier, having experienced slight price decreases during Q3 versus all other surveyed lines.
“The aggregate price increases continue to be strong in the third quarter, though slightly lower than the previous quarter, and the rate of price increases has moderated for most lines,” Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson, said in prepared remarks.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. 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.
For this most recent survey, 38 participating insurers representing approximately 20 percent of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
Source: Willis Towers Watson