US commercial insurance rates rise 7% in Q4; spike in professional lines

US commercial insurance prices rose again in the fourth quarter of 2021, according to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS). Price changes were similar to those reported in the third quarter of 2021, with data for most lines showing significant price increases.

The aggregate commercial price change reported by carriers was above 7%.

Professional liability continued to indicate the largest increases, the survey showed.

Cyber, a new line for the survey, showed a "significant" rate increase, but the volume was much smaller than all other lines.

Consistent with previous quarters, workers compensation showed rate decreases, though lower than prior quarter. When comparing account sizes, reported price changes were lower than the prior quarter for all, with the exception of specialty lines.

The survey compared prices charged on policies underwritten during the fourth quarter of 2021 with those charged for the same coverage during the same quarter in 2020.

“The aggregate price increases continue to be strong in the fourth quarter, though for some lines the price increases have tempered to a level similar to 2019,” said Yi Jing (pictured), director, Insurance Consulting and Technology, WTW.

CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation.

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