US commercial insurance prices – what’s happening?
Nearly all commercial lines continued to have significant price increases in Q1. Professional liability, despite seeing a lower rate of increase compared to the previous quarter, still recorded a double-digit rate increase following nine quarters of acceleration.
Other lines continued to show price increases, albeit similar to or slightly below those reported in Q4 2021. The only exception was worker’s compensation, which showed rate decreases similar to the previous quarter. Cyber, which was first included in the survey in Q4 2021, showed a significant rate increase, although the volume was much smaller compared to other lines.
When comparing account sizes, WTW said the reported price changes were lower than the previous quarter for all size categories.
According to WTW, companies also revisited their estimates for claim cost inflation in aggregate for 2021, landing at about 3.0%. Estimates for property were higher, considering changes in general inflation, along with the cost of materials and labor related to property damage repairs.
“The price increases for most lines continued to be strong in the first quarter of 2022, though the magnitude of increase dropped compared with prior quarters,” said Yi Jing, director of insurance consulting and technology at WTW.