Commercial insurance rates stabilizing after significant increase in Q3
Commercial insurance prices in the US grew significantly in the third quarter of 2020, with carriers reporting aggregate price changes of nearly 10 percent, according to Willis Towers Watson.
“While commercial insurance prices continued to rise this quarter at a significant rate, CLIPS data indicate the acceleration in prices observed in recent quarters stabilized somewhat,” said Yi Jing, director of insurance consulting and technology at Willis Towers Watson.
WTW's Commercial Lines Insurance Pricing Survey (CLIPS) compared prices charged on policies underwritten during the third quarter of 2020 to those charged for the same coverage and quarter in 2019.
The survey found that for nearly all lines price changes were consistent with the increases from the prior quarter survey.
Excess/umbrella and directors’ and officers’ liability insurance reported the largest increases while commercial auto showed increases of near or above double digits for the 12th consecutive quarter.
Workers compensation indicated modest price reductions. WTW noted that they have tempered for the last seven quarters.
“The price change level holding steady occurs despite the tethering impact of past workers compensation price reductions waning,” said Jing.
The report also showed that price changes differed by account sizes with small accounts more muted, mid-market accounts near double digits and large accounts well into double digits.
