ARLINGTON, Va., March 13, 2017 (GLOBE NEWSWIRE) -- Commercial insurance prices in the U.S. were nearly flat during the fourth quarter of 2016, according to leading global advisory, broking and solutions company Willis Towers Watson's (NASDAQ:WLTW) most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies written during the fourth quarter of 2016 to those charged for the same coverage during the equivalent quarter in 2015.
Most price changes were comparable with those reported in the third quarter. Data for two lines -- workers compensation and commercial property -- indicated modest price decreases, while directors and officers data continued to suggest more significant, albeit moderating, price reductions. In contrast, commercial auto once again experienced meaningful price increases. For most other lines, price increases were in the low single digits. Price changes were fairly similar across segments, though slightly negative for large accounts and marginally positive for small and mid-market ones.
"The rapid growth in the rate of price increases seen in 2012 has since slowed for much of the commercial market, but not for commercial auto. This line's cumulative price increase since 2012 is over 25%, compared to about 10% for the surveyed commercial market as a whole," said Alejandra Nolibos, director in Willis Towers Watson's Americas Property & Casualty Insurance practice. "Loss experience has been benign for many of the other lines, but the dynamics of the auto business are changing quickly and dramatically, ultimately driving challenging results and rate need for the line."
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.
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 fourth quarter of 2016 to the prices charged for the same coverage during the same quarter of 2015. For the most recent survey, data were contributed by 42 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).
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Source: Willis Towers Watson Public Limited Company