U.S. Commercial insurances' third-quarter rate hikes were nearly double-digit for the second quarter in a row, according to Willis Towers Watson PLC's market research price survey published Monday.
The total increase for all lines reported by insurance companies was just under 10%, compared to 5% in the third quarter last year, the survey found. The total increase during the second quarter was also just under 10%.
Surplus / umbrella and board members and officers' responsibility showed the largest increase during the third quarter, as both covers saw prices accelerate significantly over the previous five quarters, said Willis Towers Watson.
Special lines price increases overall were well into two figures, driven by D&O and medical professional responsibility, says Willis Towers Watson.
Commercial car also saw price increases near or above double digits for the 1
Labor compensation continued to be the outliers with modest price reductions, although these continue to slowly decrease in size, said Willis Towers Watson.
Increases also varied by account size, with large accounts appearing to increase well to double digits, mid – market accounts close to double digits and more subdued increases for small advertising.
"While commercial insurance prices continued to rise at a significant rate this quarter, CLIPS [is this a commonly understood acronym? If not, please add a parenthetical.] data show that prices observed in recent quarters have stabilized somewhat", Yi Jing, Head of Insurance Consulting and Technology at Willis Towers Watson , said in a statement.
"The level of price change remains stable despite the combined effect of former workers' compensation for declining price declines."