US commercial insurance prices rise in fourth quarter 2018: Willis Towers Watson
US commercial insurance prices rose during the fourth quarter of 2018, but the growth was just under 2 percent, according to Willis Towers Watson.
WTW's Commercial Lines Insurance Pricing Survey (CLIPS) compared prices charged on policies underwritten during the fourth quarter of 2018 to those charged for the same coverage during the same quarter in 2017.
According to the report, while price changes for most lines were similar to those reported last quarter, commercial property prices, which had been showing small price decreases for much of 2017, indicated price increases in excess of 4 percent.
For the fifth consecutive quarter, commercial auto showed significant price increases at or near double digits. Ongoing material price reductions for workers compensation were reported, in contrast to all other surveyed lines.
The report said price changes were positive and of reasonably similar magnitude across all account sizes. Early reports of 2018 claim cost inflation indicate higher cost increases than in 2017.
“Price increases for the fourth quarter were primarily modest, yet sustaining the level reported throughout 2018,” said Jeffrey Carlson, director, Insurance Consulting and Technology, Willis Towers Watson.
“Also, the uptick in carriers’ reported claim cost inflation for 2018 may be contributing to upward pressure on rates.”
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