US commercial prices up less than 1% in 10th consecutive quarter
Commercial insurance prices in the US increased slightly in the fourth quarter of 2017, but price changes still averaged less than 1 percent for the 10th consecutive quarter, according to a new report by Willis Towers Watson.
Willis' Commercial Lines Insurance Pricing Survey (CLIPS) compared prices charged on policies written during the fourth quarter of 2017 with those charged for the same coverage during the equivalent quarter in 2016.
Workers compensation and directors and officers (D&O) liability indicated material price decreases in the fourth quarter, underscored by larger price decreases than the prior quarter for workers compensation, in contrast to most other lines.
Commercial property prices, which had been showing decreases for much of the recent past, now indicate increases in the low single digits. The outlier in the results continues to be commercial auto, where price increases are again reported and are nearing double digits.
The report stated that price changes were positive across all account size segments, as large accounts moved from modest reductions to modest increases in aggregate.
“Last year’s weather disasters were some of the most financially disruptive in history, and the survey results indicate we’re likely now seeing the initial response to the catastrophes on the pricing side of the property market,” said Pierre Laurin, Americas property & casualty (P&C) sales and practice leader for insurance consulting and technology, Willis Towers Watson. “Further, commercial auto rate increases show no signs of abatement, as insurers seek to restore the line to a profitable rate level.”
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