Commercial Lines Insurance Pricing Survey 2021 Q2
U.S. commercial insurance prices grew again in the second quarter of 2021, according to Willis Towers Watson’s most recent 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 during the same quarter in 2020. The aggregate commercial price change reported by carriers grew by over 6% for the first quarter of 2020, then spiked upward to nearly and above 10% in the second through the fourth quarters of 2020, and then declined to just below 8% in the first quarter of 2021, and now just above 6% in the second quarter of 2021.
Data for nearly all lines indicated significant price increases in the second quarter. The largest price increase still comes from excess/umbrella liability which saw significantly accelerating prices over the previous six quarters. However compared to the first quarter of 2021, this coverage has the largest reduction in price increases, and directors & officers liability has the second largest reduction. Commercial auto saw reported price increases near or above double digits for the fifteenth consecutive quarter, while property coverage accelerated again and saw above double digit increases for the ninth consecutive quarter. Directors and officers liability data had been indicating modest price increases for all of 2018, with sharp adjustments upward in the past nine quarters and continued to have a significant increase in the second quarter of 2021. CLIPS continue to indicate slight price reduction for workers compensation, in contrast to nearly all other surveyed lines, though the decreases have tempered somewhat for each of the last ten quarters.
When comparing account sizes, reported price changes were all below double digits except for specialty lines. Both mid-market and large accounts have a large reduction in price increase.
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| Q2 2021 U.S. commercial insurance prices continued increasing but at a lower pace | .3 MB |
