U.S. commercial insurance prices remain flat in 2010 Q1

Aggregate U.S. commercial insurance prices remained flat during 2010 Q1, according to Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS).
This is consistent with flat pricing seen in 2009, which followed nearly five years of price decreases, Towers Watson reports.
Thirty-seven insurance companies contributed survey data, representing approximately 20% of the commercial insurance market. The survey compared prices charged on policies underwritten in 2010 Q1 compared to 2009 Q1.
Data for most lines indicate flat or small increases in prices, offset by price reductions in commercial property, directors and officers liability, and employment practices liability.
Accident year-to-date 2010 loss ratios deteriorated 5% relative to year-to-date 2009, according to CLIPS.
This marks a one-point increase in loss ratio deterioration. Between accident years 2009 and 2008 loss ratios deteriorated 4%.
However, the information is based only on three months and therefore very preliminary, Towers Watson said.
Early estimates of claim costs through the first quarter point to somewhat higher inflation than that observed in 2009, which contributes to the larger loss ratio deterioration, CLIPS reports.