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.