WTW Survey Shows Commercial Insurance Price Increases Continued in Q3

US commercial insurance prices continued to increase during this year's third quarter, with insurers reporting an aggregate commercial price change of 6.1 percent, according to Willis Towers Watson's (WTW's) Commercial Lines Insurance Pricing Survey (CLIPS).

The third quarter increase was down slightly from a 6.4 percent increase during the second quarter of this year.

The quarterly survey compares insurance prices on commercial insurance policies underwritten during the third quarter of 2023 to those prices for the same coverage in the same quarter of 2022 for a year-over-year comparison.

Commercial property experienced the greatest third-quarter price increase, rising by double digits, though at a slower pace than during the previous quarter, WTW said.

Excess/umbrella liability premiums also increased by double digits and by a slightly higher rate than during the second quarter, WTW found. The line has seen a consistent upward trend over the past 17 quarters, WTW said.

Directors and officers liability saw a decrease in prices, WTW said, though a smaller decrease than in the second quarter.

"Continuing on an upward trajectory, rates in the third quarter reflect a subtle shift from the prior quarter," Yi Jing, director of insurance consulting and technology at WTW, said in a statement. "Various coverage areas exhibited noteworthy shifts, with some experiencing notable increases and others maintaining a consistent upward trajectory."

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