Commercial lines consultant Towers Watson tracks insurance pricing. It released its second quarter stats in the Commercial Lines Insurance Pricing Survey (CLIPS) and said commercial prices rose 1% compared to a year ago. Most lines — the report said — saw low single digit increases and some saw decreases.
Towers Watson’s Alejandra Nolibos said D&O and commercial property fell a tiny amount and work comp is flat. Commercial auto and employment practice liability both saw increases.
“Price increases continue their downward trend, as strong underwriting results allow for some room in pricing. However, there are indications that workers compensation pricing may have moved into negative territory for the first time since 2010 and that pricing is also down for large accounts — a segment that is typically quick to be affected by competition. Should the benign loss trends that have marked the last several years return to longer-term levels, some of the recent underwriting success in long-tailed lines may be eliminated.” she said.
The report comes from 43 insurers that do about 20% of the U.S. commercial insurance market.
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