U.S. commercial insurance prices increase again in the second quarter but have moderated
Willis Towers Watson's Commercial Lines Insurance Pricing Survey (CLIPS) reveals that U.S. commercial insurance prices rose by over 6% in Q2 2021 compared to the same period in 2020. The survey noted significant price increases across various lines, with excess/umbrella policies leading. Commercial auto, property, and directors’ and officers’ liability also experienced notable hikes, while workers' compensation saw slight reductions. The rate of increase has moderated compared to previous quarters, particularly in excess/umbrella and directors’ and officers’ liability sectors.
- U.S. commercial insurance prices increased by over 6% in Q2 2021 compared to Q2 2020.
- Significant increases were observed in excess/umbrella, commercial auto, property, and directors’ and officers’ liability lines.
- The increase rate has moderated, indicating potential market saturation and reduced future growth.
ARLINGTON, Va., Sept. 13, 2021 (GLOBE NEWSWIRE) -- U.S. commercial insurance prices increased again during the second quarter of 2021, according to leading global advisory, broking and solutions company Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the second quarter of 2021 to those charged for the same coverage and quarter in 2020 and found the aggregate commercial price change was just above
Data for nearly all lines indicated significant price increases in the second quarter. Excess/umbrella still showed the largest price increases, while commercial auto, property, and directors’ and officers’ liability increases were also near or above double digits. Workers compensation continued to indicate a slight price reduction, in contrast to nearly all other surveyed lines. Reported price changes for account sizes were all below double-digit increases except for specialty lines.
“The rate of price increases has moderated again in the second quarter while still elevated versus historical norms. This is largely driven by significantly lower price increases for excess/umbrella and directors’ and officers’ liability than previous quarters,” said Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson.
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 Willis Towers Watson’s Insurance Marketplace Realities series.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
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 second quarter of 2021 with the prices charged for the same coverage during the same quarter of 2020. For this most recent survey, 41 participating insurers representing approximately
Media contact
Ileana Feoli: +1 212 309 5504
ileana.feoli@willistowerswatson.com
FAQ
What does the latest CLIPS report indicate about U.S. commercial insurance prices for WLTW?
Which insurance lines showed the largest price increases according to WLTW's survey?
How did workers' compensation insurance prices change in Q2 2021, based on WLTW's findings?
Is the rate of price increase for commercial insurance stabilizing according to WLTW's report?
What percentage of the U.S. commercial insurance market did the CLIPS participants represent?
