According to WTW’s Commercial Lines Insurance Pricing Survey, commercial insurance prices in the United States increased once more during the third quarter of 2022. (CLIPS). The survey compared the prices charged for policies issued in the third quarter of 2022 to those charged for the same coverage in the same quarter of 2021. The aggregated commercial price change reported by carriers was 5%, a slight decrease from 6% in the previous quarter.
Except for Directors & Officers’ liability (D&O) and Workers Compensation, data for nearly all lines continued to show price increases in the third quarter, with D&O showing a larger price decrease than reported in the previous quarter. Cyber continued to have the highest rate increases in the third quarter, but the increase was much lower than in the previous quarter. When account sizes were compared, reported price changes were all in the single digits, with specialty lines showing the smallest price increase.
“The moderation of rate hikes is clear in the third quarter.” “The package commercial multi-peril/business owner policy is exceptional, with a higher price increase than in the previous quarter,” said Yi Jing, WTW’s Director of Insurance Consulting and Technology.
CLIPS is a historical examination of changes in commercial property and casualty insurance (P&C) prices and claims cost inflation. WTW’s Insurance Marketplace Realities series provides a forward-looking analysis of commercial P&C trends, outlook, and rate predictions.