As overall US commercial insurance price increases continue to moderate, most lines continue to produce robust price increases, according to Willis Towers Watson.
The excess / umbrella produces significant price increases in the second quarter of 2021. Additionally, increases in liability for automotive, real estate and directors and officers companies were also near or above double digits, according to the survey. the company’s commercial line insurance (CLIPS) prices in the second quarter of 2021.
Overall, the overall increase in trade prices for the second quarter was just over 6 percent compared to the same period a year ago, according to the survey. This is a slowdown from the 8% increase recorded in the first quarter of 2021.
“The rate of price increase moderated again in the second quarter while remaining high by historical standards. This is largely due to significantly lower price increases for franchise / umbrella and directors and officers liability than in previous quarters, ”said Yi Jing, Director, Insurance and Technology Consulting, Willis Towers Watson, in prepared remarks.
The perpetual outlier continues to be workers’ compensation, which caused prices to drop slightly during the quarter. The reported price changes for account size were all less than double-digit increases except for leased lines, Willis Towers Watson said.
CLIPS is a retrospective look at the historical evolution of property and casualty insurance prices and claims cost inflation. The data is based on new and renewed business figures obtained directly from the carriers that underwrite the business. For this most recent survey, 41 participating insurers representing about 20 percent of the U.S. commercial insurance market (excluding state workers’ compensation funds) provided data, Willis Towers Watson said. .
Meyer Shields, analyst at Keefe, Bruyette & Woods (KBW), noted that fares are still rising faster than loss trends for almost all commercial lines, although the scale of fare increases is slowing.
“It is important to note that the flow of business from the standard market to the specialty market (which is typical of hard pricing phases) continues, reflecting sustained underwriting discipline and possibly the ongoing economic recovery, as the news companies with no history of premiums and losses often initially find cover in specialty markets, ”he wrote in an analysis after the IVANS Index and KBW’s P&C 2021 conference.
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