US commercial insurance prices rose again in the fourth quarter of 2022, according to WTW’s Commercial Lines Insurance Pricing Survey (CLIPS), with the aggregate commercial price change measured at 4.8%.
The survey compared prices charged on policies underwritten during the fourth quarter of 2022 with those charged for the same coverage during the same quarter in 2021.
According to the survey, the 4.8% increase was slightly down from the rate of 5.2% that was reported in Q3 22.
WTW also found that Directors & Officers’ (D&O) liability experienced the greatest price reduction, with a slightly larger drop than it witnessed in the prior year quarter.
Data for nearly for all lines of coverage continued to show price increases throughout the Q4, with a general rate of +4.8%, while the only area that witnessed a double-digit increase was Commercial Auto.
At the same time, Commercial Property saw the second-highest rate increase, while Workers’ Compensation continued to see price decreases.
Yi Jing, Director, Insurance Consulting and Technology, WTW, commented: “Rates continued to harden across nearly all lines of coverage in the fourth quarter however at a slower pace. While the average change still showed an increase [of 4.8%], overall market tempering demonstrates a trend of sustained market stabilization.”