Commercial auto prices jump again; three other lines continue to see price reductions
ARLINGTON, Va., June 13, 2016 (GLOBE NEWSWIRE) -- Commercial insurance prices increased modestly in aggregate (less than 1%) during the first quarter of 2016, continuing a three-year trend of smaller increases, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS). Leading global advisory, broking and solutions company Willis Towers Watson (NASDAQ:WLTW) conducted the survey, which compared prices charged on policies underwritten during the first quarter of 2016 to those charged for the same coverage during the same quarter of 2015.
Price changes in the first quarter for most lines of business were generally consistent with changes in the fourth quarter of 2015. Prices for commercial auto reported the largest increase of all lines. Three lines of business — workers compensation, commercial property, and directors and officers liability — continue to report modest price decreases. Most other lines reported price changes in the low single digits. Large and mid-market accounts continue to experience an ongoing trend of mostly flat increases, as small accounts moderated to levels consistent with these larger accounts.
“The overall results in the first quarter were generally flat and about what we expected,” said Sean McDermott, director in Willis Towers Watson’s Americas Property & Casualty Insurance practice. “Despite ample capacity, price increases, albeit small, are still holding as claim cost inflation remains modest. The one outlier, commercial auto, where poor claim results have driven meaningful price increases over the past three quarters, is the line where pricing corrections continue.”
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 39,000 employees in more than 120 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 underwritten during the first 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 40 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