Thursday, September 12, 2013
Commercial insurance prices rose by 6 percent in aggregate during the second quarter of 2013, marking the 10th consecutive quarter of price increases, according to Towers Watsonâ€™s latest Commercial Lines Insurance Pricing Survey (CLIPS).
The chart below compares the change in price level reported by carriers on policies underwritten during the second quarter of 2013 to those charged for the same coverage during the second quarter of 2012.
Workers compensation and employment practices liability lines experienced the largest price increases year over year, as has been the case since the third quarter of 2012, Towers Watson said.
Price increases for most lines of business fell in the mid- to upper-single digits, with no lines having an overall price increase of less than 4 percent.
Towers Watson noted:
While still significant, price increases for commercial property insurance underwent a slight dip in the second quarter. All account sizes for standard commercial lines showed price increases, with larger increases in mid-market accounts. In addition, companies using predictive models in pricing or underwriting saw higher price increases.â€
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).