WTW Survey Finds US Insurance Price Increases Topped 7 Percent in Q4

US commercial insurance prices increased again during the fourth quarter of 2021, according to Willis Towers Watson's (WTW's) most recent Commercial Lines Insurance Pricing Survey (CLIPS).

The aggregate commercial insurance price change reported by insurers during the quarter was more than 7 percent, WTW reported.

Fourth-quarter price changes were similar to those reported in the third quarter of 2021, WTW said, with data for most lines showing significant price increases. The largest increases were seen in professional liability. Cyber, a new line in the WTW survey, showed a significant rate increase, but the volume was much smaller than all other lines, WTW said.

Workers compensation showed rate decreases, as it has in previous quarters, though a smaller decrease than in the prior quarter, WTW found.

By account sizes, reported price changes for commercial insurance were smaller than in the prior quarter for all lines of business except specialty lines, WTW said.

"The aggregate price increases continue to be strong in the fourth quarter, though, for some lines, the price increases have tempered to a level similar to 2019," Yi Jing, director of insurance consulting and technology at WTW, said in a statement.

Willis Towers Watson's CLIPS is a retrospective look at historical changes in commercial property-casualty insurance prices and claims cost inflation.