Prices ‘nearly flat’ in commercial insurance
Commercial insurance prices were nearly flat during the third quarter of 2017, according to Willis Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS).
The survey compared prices charged on policies underwritten during the third quarter of 2017 to those charged for the same coverage during the same quarter in 2016.
Price changes reported by carriers averaged less than 1 percent for the ninth consecutive quarter, following a moderating trend in price increases that began in the first quarter of 2013.
Two lines indicated material price decreases, namely workers compensation and directors & officers liability.
Commercial property prices, which had been decreasing for much of the recent past, inched towards moderation, with only a slight decrease.
The outlier in the results continues to be commercial auto, where meaningful price increases are again reported and appear to be accelerating. Price changes for most other lines fell in the low single digits. When comparing account sizes, price changes were positive for small accounts, and fairly flat for mid-market and large accounts.
Through three quarters of 2017, preliminary data points to flat loss ratio movement for both 2016 and 2017 to date (net of catastrophes), as several insurers revised their claim cost inflation estimates downward from the prior quarter survey.
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