A new survey from Willis Towers Watson (WTW) shows that US commercial insurance prices grew again through the second quarter of 2021, although at a slower pace than in previous quarters.
The broker’s Q2 Commercial Lines Insurance Pricing Survey (CLIPS) found that the aggregate commercial price change reported by carriers was just above 6% in the second quarter of 2021.
This compares with a rate of 8% in Q1 of 2021, and 10% in quarters two through four of 2020.
The largest price increase still comes from excess/umbrella liability which saw significantly accelerating prices over the previous six quarters, analysts noted.
However compared to the first quarter of 2021, this coverage has the largest reduction in price increases, and directors & officers liability has the second largest reduction.
Commercial auto saw reported price increases near or above double digits for the fifteenth consecutive quarter, while property coverage accelerated again and saw above double digit increases for the ninth consecutive quarter.
WTW also reported that directors and officers liability data had been indicating modest price increases for all of 2018, with sharp adjustments upward in the past nine quarters and continued to have a significant increase in the second quarter of 2021.
In contrast, CLIPS continues to indicate slight price reduction for workers compensation, in contrast to nearly all other surveyed lines, though the decreases have tempered somewhat for each of the last ten quarters.
When comparing account sizes, reported price changes were all below double digits except for specialty lines. Both mid-market and large accounts have a large reduction in price increase.