Data for nearly all lines indicated significant price increases in the first quarter; however, the increases were lower than those reported in each of the previous three quarters.
Excess/umbrella and directors and officer’s liability still showed the largest price increases, while commercial auto and property price 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 more muted for small accounts, below double digits for mid-market and above double digits for large accounts and specialty lines.
“The rate of price increases has moderated fairly significantly, all while still elevated versus historical norms. This is evident by the absolute value of the movement from the fourth quarter of last year to now, which is one of the biggest one-quarter movements we’ve seen in survey history,” 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.
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