Commercial insurance prices in the United States maintained their upward trajectory during the first quarter of 2023, according to the latest Commercial Lines Insurance Pricing Survey by WTW.
The survey compared insurance prices for policies underwritten in Q1 2023 with those charged for the same coverage during the same period in 2022. Carriers reported an aggregate commercial price change of 5.6%, marking an increase from the previous quarter's rate of 4.8% (Q4 2022).
Among the coverage areas, commercial property experienced the most significant price increase, reaching double digits and surpassing the previous quarter's trend. Commercial auto also saw a double-digit increase, albeit slightly lower than the prior quarter.
On the other hand, workers' compensation and directors' and officers' liability continued to exhibit price decreases, following the trend observed in the previous quarter, WTW said.
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“Rates continued to harden across nearly all lines of coverage in the first quarter, with an aggregate price increase higher than in the prior quarter, driven primarily by the double-digit increase from commercial Property, constrained by the impact of recent high inflation,” said Yi Jing, director of insurance consulting and technology at WTW.
The survey results indicate an ongoing trend of price increases in the commercial insurance market, with certain coverage areas experiencing notable spikes. The impact of inflation has played a role in driving up prices, WTW said.
An earlier report by WTW revealed that global M&A dealmakers outperformed the market in the first quarter.
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