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Q3 commercial rate increases close to double digits: Willis

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U.S. commercial insurance third-quarter rate increases were close to double digits for the second consecutive quarter, according to Willis Towers Watson PLC’s commercial lines insurance pricing survey released Monday.

The aggregate increase for all lines reported by insurers was just under 10%, up from 5% in the prior-year third quarter, the survey found. The second-quarter aggregate increase was also just under 10%.

Excess/umbrella and directors and officers liability showed the biggest third-quarter spike, as both coverages saw prices accelerate significantly over the previous five quarters, Willis Towers Watson said.

Specialty lines price increases in aggregate were well into double digits, driven by D&O and medical professional liability lines, Willis Towers Watson said.

Commercial auto also saw price increases near or above double digits for the 12th consecutive quarter, while property rate increases were near or above double digits for the sixth consecutive quarter.

Workers compensation continued to be the outlier with modest price decreases, though these continue to slowly lessen in magnitude, Willis Towers Watson said.

Increases also varied by account size, with large accounts seeing increases well into double digits, mid-market accounts near double digits and more muted increases for small commercial.  

“While commercial insurance prices continued to rise this quarter at a significant rate, CLIPS data indicate the acceleration in prices observed in recent quarters stabilized somewhat,” Yi Jing, director, insurance consulting and technology at Willis Towers Watson, said in a statement.

“The price change level holding steady occurs despite the tethering impact of past workers compensation price reductions waning.”

 

 

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