Commercial insurance rate increases moderate
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U.S. commercial insurance prices increased again in the first quarter of 2021, up by just under 8% compared with a year ago, according to Willis Towers Watson PLC’s commercial lines insurance pricing survey released Tuesday.
However, the aggregate commercial price increase moderated from a 10% increase in the fourth quarter of 2020.
The rate of price increases for nearly all lines was lower than those reported in each of the previous three quarters, Willis said.
Excess/umbrella liability and directors and officers liability insurance saw the largest price increases, but also reported the largest decrease compared with the fourth quarter of 2020, according to the survey.
Commercial auto saw near or above double-digit price increases for the 14th consecutive quarter, while property coverage price also saw double-digit increases for the eighth consecutive quarter, Willis said in the report.
The survey continued to indicate a slight price reduction for workers compensation, in contrast to nearly all other lines surveyed.
By account size, reported price changes were more muted for small commercial accounts, slightly below double digits for mid-market accounts and above double digits for large accounts and specialty lines, according to the report.
“The rate of price increases has moderated fairly significantly, all while still being elevated versus historical norms. This is evident by the absolute value of the movement from the fourth quarter of last year to now, which is one of the biggest one-quarter movements we’ve seen in survey history,” said Yi Jing, director, insurance consulting and technology at Willis Towers Watson said in a statement.
