US commercial insurance prices nearly flatPosted On: Sep. 11, 2017 12:42 PM CST
Commercial insurance prices in the U.S. were again nearly flat during the second quarter of 2017, Willis Towers Watson P.L.C. said Monday.
The broker’s Commercial Lines Insurance Pricing Survey (CLIPS) compared prices charged on policies written during the second quarter of 2017 with those charged for the same coverage during the equivalent quarter in 2016.
Price changes reported by carriers averaged less than 1% for the eighth consecutive quarter, following a moderating trend in price increases that began in the first quarter of 2013, Willis said in a statement. Price changes in the second quarter for most lines of business were fairly consistent with changes reported in the first quarter.
Workers compensation, commercial property, and directors and officers liability experienced modest price decreases. Commercial auto continues to post meaningful price increases and appear to be accelerating, Willis Towers Watson said. For most other lines, price changes fell in the low single digits.
Price changes were slightly positive for small accounts, and flat for mid-market and large accounts.
“Through the first half of 2017, preliminary data show only a modest deterioration in P&C commercial insurers’ loss ratios of less than 1%, driven by benign estimates of claim cost inflation,” Pierre Laurin, Americas property and casualty sales and practice leader for insurance consulting and technology, Willis Towers Watson, said in a statement. “However, insurers are bracing for a significant volume of complex commercial property claims, as well as significant business interruption, commercial auto and multiple peril activity stemming from Harvey-related losses."