How high did prices go for the sector?
Data collected from carriers participating in a recent WTW survey reveals an overall increase of 6.1% in commercial lines insurance prices. This represents a slight uptick from the previous quarter (Q1’23), which recorded a 5.6% increase.
In its latest survey, WTW found that commercial insurance prices in the United States continued their upward trajectory during the second quarter of 2023, based on insights from the broker’s Commercial Lines Insurance Pricing Survey (CLIPS).
The quarterly survey compares insurance pricing for policies underwritten in the second quarter of 2023 to the prices for equivalent coverage in the same quarter of 2022, enabling a year-over-year comparison.
Among the various coverage areas, commercial property experienced the most significant price hike, marking yet another quarter of double-digit increases, surpassing the previous quarter’s growth rate. Additionally, nearly all lines of coverage witnessed price increases throughout the second quarter, with commercial auto and excess/umbrella liability showing near double-digit upticks.
On the other hand, workers’ comp continued its trend of price decreases, consistent with previous quarters. Directors & officers liability (D&O) and cyber insurance also saw price decreases, with rates declining even more than last quarter.
“Rates continued to harden across nearly all commercial lines of coverage in the second quarter. Commercial property, which had a significant double-digit increase, was the main driver of the aggregate price increase of 6.1%, compared with the prior quarter,” WTW insurance consulting and technology director Yi Jing said.
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