Commercial insurance prices up 10% over Q4: WTW
Matt Sheehan ——New data from re/insurance broker Willis Towers Watson (WTW) shows that US commercial insurance prices grew by a substantial 10% over the fourth quarter of 2020.
This was the largest quarterly increase recorded so far by WTW’s Commercial Lines Insurance Pricing Survey (CLIPS), which began in 2003.
Data for nearly all lines indicated significant price increases in Q4 with the largest increases coming from excess/umbrella liability and directors’ and officers’ liability.
The outlier continues to be workers compensation, which indicated a slight price reduction, in contrast with all other surveyed lines.
Price changes for most lines were consistent with increases seen in Q3 and differed by account sizes with small accounts muted, mid-market accounts into double digits and large accounts well into double digits.
“Commercial insurance prices continued their rise during the fourth quarter and even exceeded double-digit increases, marking the highest rate in the four quarters of 2020,” said Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson.
“These significant price change levels occurred despite rate decreases for workers compensation, for which prices are now flattening after the last 22 quarters of rate decreases.”
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