U.S. commercial insurance prices increase modestly during the first quarter
ARLINGTON, Va., June 11, 2018 (GLOBE NEWSWIRE) -- Commercial insurance prices in the U.S. increased modestly in the first quarter of 2018, according to leading global advisory, broking and solutions company Willis Towers Watson’s (NASDAQ:WLTW) Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies written during the first quarter of 2018 with those charged for the same coverage during the equivalent quarter in 2017. Price changes were in excess of 1% for the first time in 11 quarters, breaking the moderating trend in price increases observed since 2013.
Data for three standard lines — commercial auto, commercial property and excess/umbrella liability — indicated fairly significant price increases in the first quarter. Commercial property price data, which had been showing small price decreases in the recent past, now indicate increases in the low- to mid-single digits for the second consecutive quarter. The outlier in the survey findings continues to be commercial auto, with price increases nearing double digits for the second consecutive quarter. The survey indicates ongoing price reductions for workers compensation, in contrast to all other surveyed lines. Price changes were positive across all account sizes, as mid-market and large accounts pricing indications moved closer to the recently larger increases reported for small accounts.
“Commercial insurance prices trended upward across nearly all lines during the first quarter of 2018, with aggregate price changes crossing the 1% threshold for the first time in almost three years,” said Pierre Laurin, Americas Property & Casualty (P&C) sales and practice leader for Insurance Consulting and Technology, Willis Towers Watson. “Workers compensation was the only line showing a downward price trend, as claims frequency declines and workplace safety continues to improve.”
CLIPS is a retrospective look at historical changes in commercial P&C prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in Willis Towers Watson’s Marketplace Realities series.
About Willis Towers Watson
Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. property & casualty insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This particular survey compared prices charged on policies written during the first quarter of 2018 with the prices charged for the same coverage during the same quarter of 2017. For the most recent survey, 39 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
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