Data for nearly all business lines continued to indicate significant price increases in the second quarter, with the exception of workers compensation and directors & officers liability. CLIPS continues to indicate a slight price reduction for workers compensation, similar to the prior quarter. Directors & officers liability experienced a small price decrease compared to a moderate price increase during the prior quarter. The largest price increase continued to be cyber in the second quarter, although the reported volume is much smaller than other lines. When comparing account sizes, reported price changes were all below double digits including specialty lines.
“The price increases for most lines continued to be strong in the second quarter of 2022. Commercial property saw a larger price increase than prior quarter, in contrast to all other surveyed lines of business. This seems to be consistent with the impact of recent changes in general inflation, particularly with the cost of materials and labor related to property damage repairs,” said Yi Jing, Director, Insurance Consulting and Technology, WTW.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
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About CLIPS
CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the second quarter of 2022 with the prices charged for the same coverage during the same quarter of 2021. For this most recent survey, 42 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.