Commercial Insurance Prices Nearly Flat In 2Q

ARLINGTON, Va., Sept. 11, 2017 (GLOBE NEWSWIRE) -- Commercial insurance prices in the U.S. were again nearly flat during the second quarter of 2017, according to leading global advisory, broking and solutions company Willis Towers Watson’s (NASDAQ:WLTW) Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies written during the second quarter of 2017 with those charged for the same coverage during the equivalent quarter in 2016. Price changes reported by carriers averaged less than 1% for the eighth consecutive quarter, following a moderating trend in price increases that began in the first quarter of 2013.

Price changes in the second quarter for most lines of business were fairly consistent with changes reported in the first quarter. Data for three lines (workers compensation, commercial property, and directors and officers liability) indicated modest price decreases. The outlier in the survey results continues to be commercial auto, where meaningful price increases were again reported and appear to be accelerating. For most other lines, price changes fell in the low single digits. Price changes were slightly positive for small accounts, and flat for mid-market and large accounts.

“Through the first half of 2017, preliminary data show only a modest deterioration in P&C commercial insurers’ loss ratios of less than 1%, driven by benign estimates of claim cost inflation,” said Pierre Laurin, Americas Property & Casualty sales and practice leader for Insurance Consulting and Technology, Willis Towers Watson. “However, insurers are bracing for a significant volume of complex commercial property claims, as well as significant business interruption, commercial auto and multiple peril activity stemming from Harvey-related losses.”

About Willis Towers Watson

Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

About CLIPS

CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. property & casualty insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This particular survey compared prices charged on policies written during the second quarter of 2017 to the prices charged for the same coverage during the same quarter of 2016. For the most recent survey, data were contributed by 40 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).

Media contact

Ileana Feoli: +1 703 258 8556
Ileana.feoli@willistowerswatson.com

Source: Willis Towers Watson Public Limited Company