U.S. commercial insurance prices showed an aggregate increase just above 6%

U.S. commercial insurance prices grew again in the 2nd of 2023, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the 2nd quarter of 2023 to those charged for the same coverage during the same quarter in 2022. The aggregate commercial price change reported by carriers spiked upward to nearly and above 10% in the 2nd through the 4th quarters of 2020, and since then has started declining to just below 5% in the 4th quarter of 2022 but increased back to above 5% in the first quarter of 2023 and now just above 6% in the 2nd quarter of 2023.

Line of business price changes

Data for nearly all lines continue to indicate moderate to significant price increases in the 2^nd  quarter with the exception of workers compensation, directors & officers liability, and cyber. CLIPS continues to indicate a slight price reduction for workers compensation. Directors & officers liability saw another quarter of price decrease , deeper than prior quarter. Commercial property continued to see double-digit price increase, higher than prior quarter. The second largest price increase came from excess/umbrella liability which saw significantly accelerating prices over the previous sixteen quarters and experienced a slightly higher increase than the prior quarter with a close to double-digit price increase. Commercial auto saw reported price increases near or above double digits for the twenty-third consecutive quarter. Cyber, which was first introduced into the survey in the 4^th quarter of 2021 with the volume being much smaller than all other lines, continued to show a slow down in its price change with a larger price decrease than prior quarter.

Account size price changes

When comparing account sizes, reported price changes for small and mid-market were below double digits. Large account saw double digit price increase. Specialty lines had moderate price decrease driven by directors & officers liability.