Standard commercial insurance prices on the rise: Towers Watson
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Commercial insurance prices increased nearly 1.5% during the second quarter compared with the same period last year, which Towers Watson & Co. said is the first time prices rose for all standard commercial product lines since the fourth quarter of 2003.
“Commercial property prices were likely influenced by catastrophes earlier in the year” such as the March 11 earthquake and tsunami in Japan, Bruce Fell, managing director of the New York-based consulting firm's property/casualty practice in the Americas, said in a statement.
Workers compensation prices, continuing a trend of increases that began in the first quarter of this year, led the increases with a rise in the range of 1% to 5%, according to Towers Watson. In addition, commercial property prices changed in the range of minus 1% to plus 3%. Prices rose the most in middle-market and large accounts, Towers Watson said.
“It is too early to definitively call this a hardening market,” Mr. Fell said in the statement. “We believe the third and fourth quarter indications will provide a more complete view of the industry's direction.”
Towers Watson used data contributed by 38 participating insurance companies representing around 20% of the U.S. commercial insurance market, excluding state workers compensation funds, to compile the Commercial Lines Insurance Pricing Survey.
