Commercial insurance prices in the US have continued to increase in the first quarter of 2023 to above 5%, according to a recent survey by WTW.
The Commercial Lines Insurance Pricing Survey (CLIPS) compared insurance prices on policies underwritten during the first quarter of 2023 to those charged for the same coverage throughout the same quarter in 2022.
It found that the aggregate commercial price change reported by carriers was an increase of 5.6%, up from the rate of 4.8% in the previous quarter (Q4 22).
With a double-digit increase Commercial Property was the coverage area that experienced the greatest price increase, trending higher than in the prior quarter.
Another line demonstrating a double-digit increase was Commercial Auto, yet slightly lower than in the prior quarter.
The survey also found that workers’ Compensation continued to show a price decrease, as well as Directors & Officers Liability, where both continued to display a similar price decrease as exhibited in the prior quarter.
Yi Jing, Director, Insurance Consulting and Technology, WTW, said: “Rates continued to harden across nearly all lines of coverage in the first quarter, with an aggregate price increase higher than in the prior quarter, driven primarily by the double-digit increase from Commercial Property, constrained by the impact of recent high inflation.”
