According to the latest insurance spending report from Towers Watson, commercial insurance prices rose just 3% in the second quarter of 2014, following several quarters that saw increases over 6%.
The result continues a price moderation trend that has been in place for commercial lines since mid 2013, Towers Watson said.
“Carriers are reporting loss ratios for 2013 and 2014 that benefit from 2012 and 2013 price levels,” said Alejandra Nolibos, director in Towers Watson's property & casualty business. “Now they are seeing a continuation of low loss cost trends and no lack of capital in the market, which may be leading to the slowdown in price increases. In particular — and consistent with the availability of capital through abundant reinsurance capacity — property rates are dropping sharply.”
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