According to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS), US commercial insurance prices rose again in the second quarter of 2022.
The total commercial price change reported by carriers was almost 6%. The study compared prices for policies closed in the second quarter of 2022 with those for the same coverage in the same period a year ago.
“Price increases for most lines remained strong in the second quarter of 2022. Commercial real estate saw a larger price increase than the previous quarter, unlike all other industries surveyed,” said Yi Jing, director of Insurance Consulting and Engineering at WTW. “This appears to be consistent with the impact of recent changes in headline inflation, particularly the cost of materials and labor associated with real estate.
The CLIPS report showed “significant” price increases in the second quarter for nearly all industries, excluding workers’ compensation and directors and officers. The biggest price increase remains in cyber, although the volume is much smaller than other lines, WTW said.
Early in the second quarter, the broker said in WTW’s Insurance Marketplace Realities report that while price increases continued for most industries, the increases are slowing and stabilizing. The CLIPS report noted that the overall commercial change in the second through fourth quarters of 2020 was close to and above 10%.
US Trends Commercial Lines Business Insurance Price Trends Willis Towers Watson
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