The survey compared prices charged on policies underwritten during the second quarter of 2022 to those charged for the same coverage during the same quarter in 2021. The aggregate commercial price change reported by carriers spiked upward to nearly and above 10% in the second through the fourth quarters of 2020, and since then has declined to just below 6% in the second quarter of 2022.
Data for nearly all business lines continued to indicate significant price increases in the second quarter, except for workers compensation and directors & officers’ liability. CLIPS continues to indicate a slight price reduction for workers compensation, similar to the prior quarter. Directors & officers liability experienced a small price decrease compared to a moderate price increase during the prior quarter. The largest price increase continued to be cyber in the second quarter, although the reported volume is much smaller than other lines. When comparing account sizes, reported price changes were all below double digits including specialty lines.
“The price increases for most lines continued to be strong in the second quarter of 2022. Commercial property saw a larger price increase than prior quarter, in contrast to all other surveyed lines of business. This seems to be consistent with the impact of recent changes in general inflation, particularly with the cost of materials and labor related to property damage repairs,” said Yi Jing, Director, Insurance Consulting and Technology, WTW.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
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