U.S. commercial insurance prices rose just above 7% on an aggregate basis in the third quarter, after increasing slightly below 8% in the first and second quarters, Willis Tower Watson PLC said Wednesday.
Nearly all lines saw substantial third-quarter price increases, although the rate of increases moderated for most lines, Willis said.
Professional liability showed the largest increase, while excess and umbrella liability and directors and officers liability also saw substantial price increases, though lower than those in the second quarter.
Commercial auto saw price increases near or in double digits for the 16th consecutive quarter, while property coverage saw increases near or in double digits for the 10th consecutive quarter.
Willis’ Commercial Lines Insurance Pricing Survey showed a slight price reduction for workers compensation “in contrast with nearly all other surveyed lines,” the brokerage said.
“The aggregate price increases continue to be strong in the third quarter, though slightly lower than the previous quarter, and the rate of price increases has moderated for most lines,” Yi Jing, director, insurance consulting and technology, at Willis, said in a statement with the report.
The aggregate commercial price change reported by insurers grew by over 6% for the first quarter of 2020, then accelerated to nearly or above 10% in the second through the fourth quarter of last year.