US commercial insurance prices see biggest quarter-to-quarter hike in Q2, finds WTW

US commercial insurance prices rose close to double digits in the second quarter of 2020, reflecting the largest recorded quarter-to-quarter acceleration, according to broker Willis Towers Watson (WTW). WTW's latest Commercial Lines Insurance Pricing Survey (CLIPS) found that rates increased substantially during Q2, rising by almost 10 percent compared with prices charged during the same quarter of 2019. Excess/umbrella and directors’ and officers’ liability saw the largest price increases, growing by over 20 percent for the second consecutive quarter. Commercial auto data indicated price increases near or above double digits for the 11th consecutive quarter. Property prices...

...accelerated significantly in the past four quarters, now indicating increases well into the double digits.

WTW said only workers compensation showed price reductions, and they continue to slowly decrease in magnitude.

Price changes were said to have varied significantly by account sizes. Small commercial accounts grew by mid-single digits; mid-market accounts showed double-digit increases, and large accounts were well above this range.

“Second quarter data indicated the biggest quarter-to-quarter shift in CLIPS history, dating back to 2003 and underscoring the uncertainty of the day,” said Jeffrey Carlson, director, insurance consulting and technology, Willis Towers Watson. “The combination of social inflation, civil unrest, the economy and uncertainty around COVID-19 has created an increasingly cautious industry.”