Commercial insurance prices continue to moderate, with aggregate prices rising by less than 1% during the first quarter of 2015, a study conducted by Willis Towers Watson reveals.
The study, dubbed the Commercial Lines Insurance Pricing Survey (CLIPS), compares prices charged on policies underwritten during the fourth quarter of 2015 to those charged for the same coverage plan during the same period in 2014.
Much like the previous quarter’s results, workers compensation, commercial property, and directors and officers’ liability all posted modest price decreases. Of the various lines, commercial auto displayed the largest price increases—other lines experienced decreases in the low single digits, according to the survey. For both large and mid-market accounts, price increases were virtually flat. Small commercial account data posted modest increases.
“CLIPS suggests a market still in positive territory as to pricing, but the story is very different by line. For example, we see another quarter of price increases for commercial auto liability — fueled by deterioration in claim costs — while director and officer price decreases, which started a year ago, continue to accelerate as the market competes for the best-performing segments,” commented Willis Towers Watson’s Americas Property & Casualty Insurance director Alejandra Nolibos. “This means a conclusion on pricing for the overall market is hard to interpret, but carriers continue to report modest claim cost inflation for most lines surveyed, which is keeping loss ratio movements in check.”
