Survey Finds Insurance Price Increases Moderated during First Quarter

Aggregate US commercial insurance prices increased just less than 8 percent during the first quarter of this year compared to the same period in 2020, according to Willis Towers Watson's Commercial Lines Insurance Pricing Survey (CLIPS).

Nearly all coverage lines showed significant prices increases in the first quarter, according to Willis Towers Watson, though increases were lower than those reported in each of the previous three quarters.

Excess/umbrella coverage and directors and officers liability continued to show the largest price increases, according to the CLIPS report, while commercial auto and property insurance price increases were also near or above double digits. Workers compensation continued to experience a slight price reduction.

By account size, reported first quarter price changes were more muted for small accounts, below double digits for mid-sized buyers, and above double digits for large accounts and specialty lines, according to Willis Towers Watson.

"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," Yi Jing, director, 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.