Willis Towers Watson survey claims uptick in US commercial insurance prices in Q1 2019

US commercial insurance prices have increased in the first quarter of 2019, but the growth was just under 2 percent, according to Willis Towers Watson.

WTW's Commercial Lines Insurance Pricing Survey (CLIPS) compared prices charged on policies underwritten during the first quarter of 2019 to those charged for the same coverage during the same quarter in 2018.

CLIPS is a retrospective look at historical changes in commercial property/casualty prices and claim cost inflation.

According to the report, while price changes for most lines were similar to or slightly above those reported last quarter, four standard lines indicated material price increases - commercial auto, commercial property, excess/umbrella liability, and directors and officers liability.

For the fourth consecutive quarter, commercial auto showed significant price increases at or near double digits.

The report said that the price changes were positive and of reasonably similar magnitude across all account sizes.

“Overall, price changes were consistent with recent surveys, with the exception of directors and officers liability, where data now indicate an uptick of price increases into the mid-single digits,” said Jeffrey Carlson, director, insurance consulting and technology, Willis Towers Watson.

“Also, while estimates of 2018 claim cost inflation are still elevated compared to the recent past, they have moderated somewhat from estimates provided in our last survey, as the data continue to mature.”

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