US commercial insurance prices rise further in Q3

Commercial insurance prices in the US increased by over 2 percent year on year in the third quarter of 2018, according to Willis Towers Watson’s Commercial Lines Insurance Pricing Survey.

Price changes for most lines were similar to those reported in the previous quarter, the report noted. Three lines — commercial auto, commercial property and excess/umbrella liability — showed material price increases, according to the data. Workers compensation reported ongoing material price reductions in contrast to all other surveyed lines.

When comparing the survey results by account size, price changes were once again positive and of similar magnitude across all segments, Willis noted. Mid-market and large account price adjustments caught up to the recently larger increases reported for small accounts, it added.

“A second quarter of meaningful price increases may signal a reaction to the much talked about emergence of unfavourable loss trends beyond auto,” said Ben Williams, director, insurance consulting and technology at Willis Towers Watson.

“As in the past, and perhaps not surprisingly, increases in small accounts seem to have acted as a leading indicator: Middle market and large accounts are catching up with larger increases this quarter,” Williams added.

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