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US commercial price increases moderate in Q3: WTW

Posted On: Dec. 12, 2022 9:48 AM CST

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U.S. commercial prices increased by 5% in the third quarter, down slightly from 6% in the second quarter, Willis Towers Watson PLC said in a report released Monday.

The aggregate 5% increase compared with just above a 7% increase in the year-earlier period, based on data from WTW’s Commercial Lines Insurance Pricing Survey.

Nearly all lines saw price increases in the third quarter. Notable exceptions were directors and officers liability and workers compensation, WTW said.

D&O showed a larger price decrease than was reported in the second quarter.

Cyber continued to see the highest rate of increase, but it was much lower than the second-quarter increase.

Comparing account sizes, reported price changes were all in single digits, with specialty lines seeing the smallest price increase, WTW said.

“The moderation of rate increases was clearly evident in our reported results for the third quarter. Package commercial multi-peril/business owner policies were exceptional, with a higher price increase than the previous quarter,” Yi Jing, director, insurance consulting and technology, at WTW, said in a statement.