US commercial insurance prices rise 3% in Q2
Commercial insurance prices in the US increased by nearly 3 percent year on year in the second quarter of 2018, according to Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS).
Price changes of this magnitude have not been reported in almost four years, Willis noted.
Price changes for nearly all lines were higher in the second quarter compared to those reported in the first quarter of 2018. Commercial auto, commercial property and excess/umbrella liability all indicated material price increases. Commercial property price data, which had been showing small price decreases recently, now shows increases in the low- to mid-single digits for the third consecutive quarter. Commercial auto continues to be the outlier, with meaningful price increases at or near double digits for the third consecutive quarter. The data indicate that workers compensation is the only standard surveyed line with ongoing price reductions.
When comparing the survey results by account size, price changes were positive and nearly identical across all segments, as mid-market and large account commercial price change data caught up to the recently larger increases reported for small accounts.
“Almost all lines show a more rapid pace of price increases,” said Ben Williams, director, pricing, product, claims and underwriting practice, North America. “Notably, mid-market and large accounts prices have recently seen the largest increases. This is fodder for thought, as the history of CLIPS suggests that larger accounts have been leading indicators of market adjustments.”
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