The U.S. commercial insurance sector saw prices increase by nearly 4% during the second quarter, an increase of about 1% from the prior-year quarter.
Excess/umbrella liability and directors and officers all experienced price hikes, with increases approaching double digits for the first time in several years. For the seventh consecutive quarter, commercial auto had price increases near or above double digits, according to Willis Towers Watson PLC's Commercial Lines Insurance Pricing Survey.
Price changes trended upward for all account sizes, though more significantly for midmarket and large accounts.
"Adverse loss trends in auto and D&O, and deteriorating or potentially deteriorating loss trends in other casualty lines, together with the prospect of potentially diminishing reserve releases seems to have pushed carriers to demand higher prices," said Alejandra Nolibos, Willis Towers Watson's senior director of insurance consulting and technology business.
