Commercial insurance prices took a 1% bump compared with prices last year a survey from Towers Watson has revealed.
The small increase comes from a comparison of policies underwritten this time last year analysed in the Commercial Lines Insurance Pricing Survey conducted by the firm.
The increase was smaller when compared with those of the last quarter analysed but when measured against 2014, the price increases show signs of a flattening or hardening market.
“While price changes were comparable to those reported one quarter ago for a few lines, many lines continued to moderate further, including workers compensation, commercial property, professional liability, directors and officers liability, and employment practices liability,” the company said as it announced the findings.
“Three of these lines (workers compensation, commercial property, and directors and officers), indicated price decreases in the second quarter of 2015.”
While the report does analyse results in the United States, the green shoots of growth will be a good sign to the Australian industry as many are looking for a better market over the coming years.
“The largest price increases reported were in the commercial auto line, followed by employment practices liability,” the company continued.
“Price increases for most lines fell in the low single digits. When comparing account sizes, price increases were more slightly negative for large accounts, and moderating for small and mid-market accounts. Specialty accounts price increases moderated since the prior survey as well.”
The news follows comments from the leaders of both Austbrokers
and Steadfast who both believe the market is on its way to hardening in FY17.