Commercial lines insurance prices showed modest growth in the first quarter of 2014, increasing in aggregate by 4% over the same period last year, according to the latest “Commercial Lines Insurance Pricing Survey” from Towers Watson & Co., released Monday.
Towers Watson noted, however, that the survey shows price increases moderating, with current increases being the smallest in two years, down from 5% in the fourth quarter of 2013 and from the 6% to 7% increases seen during the second half of 2012 and the first half of 2013.
The rate of price increases in all lines decreased in the first quarter from those reported in the fourth quarter, Towers Watson said, with the exception of professional liability.
Employment practices liability showed the largest year-over-year price increases, Towers Watson said, with excess/umbrella liability and commercial auto also showing significant increases. Percentage price increases for most lines were in the low- to mid-single digits, according to the survey, with no standard commercial line showing a price decrease during the first quarter.
CLIPS data is based on information about both new and renewing business that Towers Watson obtains directly from the insurers underwriting the business. Participating insurers represent a cross section of U.S. property/casualty insurers, Towers Watson said.
The latest survey included data contributed by 43 participating insurers representing approximately 20% of the U.S. commercial insurance market.