Artlington, VA – Commercial insurance prices in the U.S. were again nearly flat during the second quarter of 2017, according to leading global advisory, broking and solutions company Willis Towers Watson’s (NASDAQ: WLTW) Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies written during the second quarter of 2017 with those charged for the same coverage during the equivalent quarter in 2016. Price changes reported by carriers averaged less than 1% for the eighth consecutive quarter, following a moderating trend in price increases that began in the first quarter of 2013.
Price changes in the second quarter for most lines of business were fairly consistent with changes reported in the first quarter. Data for three lines (workers compensation, commercial property, and directors and officers liability) indicated modest price decreases. The outlier in the survey results continues to be commercial auto, where meaningful price increases were again reported and appear to be accelerating. For most other lines, price changes fell in the low single digits. Price changes were slightly positive for small accounts, and flat for mid-market and large accounts.
“Through the first half of 2017, preliminary data show only a modest deterioration in P&C commercial insurers’ loss ratios of less than 1%, driven by benign estimates of claim cost inflation,” said Pierre Laurin, Americas Property & Casualty sales and practice leader for Insurance Consulting and Technology, Willis Towers Watson. “However, insurers are bracing for a significant volume of complex commercial property claims, as well as significant business interruption, commercial auto and multiple peril activity stemming from Harvey-related losses.”
Click here for the survey: Commercial Lines Insurance Pricing Survey (CLIPS) Q2 2017
Source: Willis Towers Watson