What a difference a year makes. Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS) shows that commercial insurance prices rose again by 3 percent in aggregate during the third quarter of 2014, drawing a line after five consecutive quarters of moderating price increases.
The chart below compares the change in price level reported by carriers on policies underwritten during the third quarter of 2014 to those charged for the same coverage during the third quarter of 2013.
Towers Watson noted:
Price changes reported by carriers mark a pause in the moderation of price increases observed in the prior five consecutive quarters, following increases of between 6 percent and 7 percent, as reported in the second half of 2012 and first half of 2013.”
Price increases were fairly similar to those reported one quarter ago for most lines, but continued moderation in workers compensation and some specialty lines was offset by flat pricing in property.
The employment practice liability line, followed by commercial auto reported the largest price increases, Towers Watson said. Price increases for most lines fell in the low single digits.
Commercial property data indicated no rate change following a slight price decrease one quarter ago. When comparing account sizes, price increases were more moderate for large and specialty accounts than small and mid-market accounts, Towers Watson added.
Insurance Journal has more on this story here.
For the most recent survey, data were contributed by 43 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).