Survey reveals modest but larger increases in commercial insurance prices
Commercial insurance prices increased modestly in the first quarter of 2018, according to Willis Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the first quarter of 2018 to those charged for the same coverage during the same quarter in 2017. Price changes reported by carriers was in excess of 1% for the first time in eleven quarters, following a moderating trend in price increases that began in the first quarter of 2013.
Data for three standard lines indicated material price increases in the first quarter; commercial auto, commercial property, and excess/umbrella liability. Commercial property price data, which had been showing small price decreases for much of the recent past, now indicates increases in the low to mid-single digits for the second consecutive quarter. The outlier in the results continues to be commercial auto, where meaningful price increases are again reported and are near double digits for the second consecutive quarter. CLIPS indicates ongoing material price reductions for workers compensation, in contrast to all other surveyed lines.
When comparing account sizes, price changes were positive across all segments, as mid-market and large accounts pricing data moved closer to the recently larger increases reported for small accounts. Specialty accounts moved from a small price decrease to a small price increase in aggregate, driven by more significant price increases reported in the professional liability segment and stabilization of directors & officers prices.
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Commercial Lines Insurance Pricing Survey 2018 Q1 | .3 MB |