US commercial insurance prices rose again in the second quarter of 2022, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS).
The survey compared prices for policies underwritten during Q2 to those charged for the same coverage in the same quarter of 2021. The aggregate commercial price change reported by carriers rose nearly and above 10% in the second through the fourth quarters of 2020, and since then has fallen to just below 6% in the second quarter of 2022, the survey reported.
Data for nearly all lines of business continued to show significant price hikes in Q2, except for workers’ compensation and directors’ and officers’ liability, CLIPS found. The survey continued to indicate a slight price drop for workers’ compensation, similar to Q1. D&O liability saw a small price decrease, compared to a moderate increase during Q1.
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The largest price increase continued to b3e cyber, although the reported volume was much smaller than other lines, CLIPS reported. 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,” said Yi Jing, director of insurance consulting and technology at WTW. “Commercial property saw a larger 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.”