Arlington, VA – Commercial insurance prices increased modestly in aggregate (less than 1%) during the first quarter of 2016, continuing a three-year trend of smaller increases, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS). Global advisory, broking and solutions company Willis Towers Watson (NASDAQ: WLTW) conducted the survey, which compared prices charged on policies underwritten during the first quarter of 2016 to those charged for the same coverage during the same quarter of 2015.
Price changes in the first quarter for most lines of business were generally consistent with changes in the fourth quarter of 2015. Prices for commercial auto reported the largest increase of all lines. Three lines of business — workers compensation, commercial property, and directors and officers liability — continue to report modest price decreases. Most other lines reported price changes in the low single digits. Large and mid-market accounts continue to experience an ongoing trend of mostly flat increases, as small accounts moderated to levels consistent with these larger accounts.
“The overall results in the first quarter were generally flat and about what we expected,” said Sean McDermott, director in Willis Towers Watson’s Americas Property & Casualty Insurance practice. “Despite ample capacity, price increases, albeit small, are still holding as claim cost inflation remains modest. The one outlier, commercial auto, where poor claim results have driven meaningful price increases over the past three quarters, is the line where pricing corrections continue.”
Click here for the survey: Commercial Lines Insurance Pricing Survey (CLIPS) Q1 2016
Source: Willis Towers Watson