Commercial lines pricing flattened in 2009 Q4

Commercial insurance prices remained flat during 2009 Q4, reports Towers Watson’s Commercial Lines Insurance Pricing Survey.
The survey compared prices charged on policies underwritten by 36 participating insurance companies during 2009 Q4 to the prices charged for the same coverage during the same quarter in 2008.
“This latest data points to a stabilization of the soft market where companies are showing pricing discipline — consistent with the observations during the first three quarters of 2009 and follows almost five years of price decreases,” Towers Watson said.
Data for most lines indicate small increases in prices, offset by price reductions in workers compensation and employment practices liability.
The survey indicates that accident year 2009 loss ratios deteriorated 3% relative to 2008. But, this deterioration comes on top of an estimated deterioration for accident year 2008 of 9% over 2007.
Flat aggregate loss cost changes indicate an improvement in claim cost inflation which combined with stabilizing prices contributes to the relatively modest 2009 change.