The results of WTW’s current Commercial Insurance Pricing Survey (CLIPS) have been released, suggesting that rates in the United States increased again in the first quarter of 2022.
The poll compared the prices of policies issued in the first quarter of 2021 to those charged in the same quarter of 2021, finding a 6% price rise overall. This is around one point lower than what was reported in Q1 2021, according to WTW.
In Q1, nearly all commercial lines experienced major pricing hikes. Despite a slower rate of growth than the previous quarter, professional liability experienced a double-digit rate increase after nine quarters of acceleration.
Other lines continued to have price rises, however they were similar to or somewhat lower than in Q4 2021. Worker’s compensation was the only exception, with rate decreases identical to the prior quarter. Although the volume was significantly smaller than other lines, cyber, which was first included in the study in Q4 2021, exhibited a considerable rate increase.
When comparing account sizes, WTW claimed the reported pricing changes for all size categories were lower than the previous quarter.
Companies also revised their forecasts for claim cost inflation in aggregate for 2021, according to WTW, which came in at around 3.0%. Property estimates were higher due to changes in general inflation, as well as the cost of materials and labour for property damage restorations.
“Price rises for most lines remained high in the first quarter of 2022, though their size decreased compared to previous quarters,” said Yi Jing, WTW’s director of insurance consulting and technology.