Insurance Price Increases Continue in Second Quarter Though Moderating

US commercial insurance prices increased again during the second quarter of 2021, with the year-over-year aggregate commercial price change just greater than 6 percent, according to Willis Towers Watson's Commercial Lines Insurance Pricing Survey (CLIPS).

The survey compared prices charged on policies underwritten during the second quarter of 2021 to those charged for the same coverage and quarter in 2020.

Willis Towers Watson said that data for nearly all insurance lines indicated significant price increases during the second quarter. Excess/umbrella 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 show a slight price reduction, in contrast with nearly all other lines surveyed.

Reported price changes for various account sizes were all below double-digit increases except for specialty lines, Willis Towers Watson said.

"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," Yi Jing, director of insurance consulting and technology at Willis Towers Watson, said in a statement.

CLIPS is a retrospective look at historical changes in commercial property and casualty insurance prices and claim cost inflation.