US commercial insurance prices increased by almost 10% during the second quarter of 2020, according to a new survey by re/insurance broker Willis Towers Watson (WTW).
WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) found that rates had increased substantially during Q2, when compared with the same period in 2019.
Excess/umbrella and directors’ and officers’ liability data indicated the largest price increases, with prices for both growing by over 20% for the second consecutive quarter.
Meanwhile, commercial auto data indicated price increases near or above double digits for the 11th consecutive quarter and property prices accelerated significantly over the past four quarters, now indicating increases well into the double digits.
Only workers compensation showed price reductions, and they continue to slowly decrease in magnitude, analysts noted.
However, price changes did differ significantly by account size, with small commercial accounts growing by mid-single digits, mid-market accounts by double-digit, and large accounts well above this range.
“Second quarter data indicated the biggest quarter-to-quarter shift in CLIPS history, dating back to 2003 and underscoring the uncertainty of the day,” said Jeffrey Carlson, director, Insurance Consulting and Technology, Willis Towers Watson.
“The combination of social inflation, civil unrest, the economy and uncertainty around COVID-19 has created an increasingly cautious industry.”
