Two broker surveys give insight on where U.S. commercial insurance prices are at.
Willis Towers Watson’s most recent Commercial Lines Pricing Survey (CLIPS) shows commercial insurance prices were again nearly flat during the fourth quarter of 2016:
As you can see above, price changes reported by carriers were less than 1 percent for the fifth consecutive quarter, following a moderating trend in price increases that began in the first quarter of 2013.
The outlier in the results? Commercial auto, where meaningful price increases continue to be reported. Price changes for most other lines fell in the low single digits, according to the CLIPS survey.
Meanwhile, the Marsh Global Insurance Market Index Q4 2016 found that U.S. composite insurance rates were down 3 percent in the fourth quarter of 2016, in line with the global rate:
Marsh said the continuing decline in U.S. commercial insurance prices was driven largely by decreases in property insurance pricing.
However, U.S. cyber liability rates continued to increase for the sixth consecutive quarter, albeit at a moderating rate, Marsh noted.
Cyber price increases don’t appear to be deterring businesses from buying this essential coverage.
The number of Marsh clients purchasing cyber insurance increased by 25 percent from 2015 to 2016 across all industries, with the greatest overall uptake in healthcare, communications, media and technology.
See more on the importance of cyber insurance to businesses in this Insurance Information Institute (I.I.I.) white paper.
Significant trends shaping the property/casualty insurance business are discussed in this I.I.I. presentation.