U.S. commercial insurance prices rose again in the fourth quarter of 2021, according to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the fourth quarter of 2021 with those charged for the same coverage during the same quarter in 2020. The aggregate commercial price change reported by carriers was above 7%.
Price changes were similar to those reported in the third quarter of 2021, with data for most lines showing significant price increases. Professional liability continued to indicate the largest increases. Cyber, a new line for the survey, showed a significant rate increase, but the volume was much smaller than all other lines. Consistent with previous quarters, workers compensation showed rate decreases, though lower than prior quarter. When comparing account sizes, reported price changes were lower than the prior quarter for all, with the exception of specialty lines.
“The aggregate price increases continue to be strong in the fourth quarter, though for some lines the price increases have tempered to a level similar to 2019,” said Yi Jing, director, Insurance Consulting and Technology, WTW.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
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About CLIPS
CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the fourth quarter of 2021 with the prices charged for the same coverage during the same quarter of 2020. For this most recent survey, 42 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.