Global insurance brokerage WTW revealed that U.S. commercial insurance prices have sustained a consistent upward trend throughout the third quarter of 2023.
According to the Commercial Lines Insurance Pricing Survey (CLIPS) conducted by WTW’s Insurance Consulting and Technology (ICT) business, commercial premiums demonstrated a steady increase of 6.1%.
The quarterly survey compared insurance prices for policies underwritten during the third quarter of 2023 with those from the same corresponding quarter in 2022, showing a year-over-year rise.
Carriers reported an aggregate commercial price change slightly above 6%.
Among the various coverage areas, Commercial Property experienced the most significant price increase, showcasing a notable double-digit surge.
While the rate was slightly lower than in the previous quarter, it reflected a substantial uptrend. Excess/Umbrella liability also saw a double-digit increase, surpassing the previous quarter’s rate, indicating a consistent upward trajectory for this coverage over multiple quarters.
In contrast, Directors & Officers liability and Cyber coverage continued to display price decreases, albeit at somewhat slower rates compared to the prior quarter.
Yi Jing, Director of Insurance Consulting and Technology (ICT) at WTW, noted, “Continuing on an upward trajectory, rates in the third quarter reflected a subtle shift from the prior quarter. While the overall increase rate was somewhat similar to the prior quarter, some coverage lines experienced notable double-digit increases.”
CLIPS provides a retrospective analysis of historical changes in commercial property and casualty insurance (P&C) prices and claims cost inflation.
