September 14, 2015 by Canadian Underwriter
Commercial insurance prices in the United States increased in aggregate at a modest pace (1%) during the second quarter of 2015, notes the latest Commercial Lines Insurance Pricing Survey (CLIPS) from Towers Watson, released Monday.
Comparing prices charged on policies underwritten during 2015 Q2 to those charged for the same coverage in 2014 Q2, the survey shows the latest quarter’s pricing continues a trend of ever-smaller increases, notes a statement from global professional services company Towers Watson.
Price increases for most lines surveyed were in the low single digits, having moderated further during the second quarter, Towers Watson reports. Directors and officers, and commercial property reported small price decreases, while workers’ compensation pricing was nearly flat, showing a very slight decrease.
“Price increases continue their downward trend, as strong underwriting results allow for some room in pricing,” says Alejandra Nolibos, a director with Towers Watson’s Property & Casualty Insurance practice. But there are indications that workers’ compensation pricing “may have moved into negative territory for the first time since 2010 and that pricing is also down for large accounts — a segment that is typically quick to be affected by competition,” Nolibos notes.
“Should the benign loss trends that have marked the last several years return to longer-term levels, some of the recent underwriting success in long-tailed lines may be eliminated,” Nolibos cautions.
Overall, survey results show the following:
Tower Watson reports data from CLIPS – 43 insurers representing a cross section of U.S. property and casualty insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. participated – are based on both new and renewal business figures obtained directly from carriers underwriting the business.
Have your say: