Commercial insurance prices in the U.S. were again nearly flat during the second quarter of 2017, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS) from Willis Towers Watson.
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. The survey compared prices charged on policies written during the second quarter (Q2) of 2017 with those charged for the same coverage during Q2 of 2016.
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|How Q2 fared
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. Commercial Auto continues to trend as an outlier in the company's survey. Price increases were again reported and appear to be accelerating.
"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."
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
