Towers Watson’s Take On Commercial Lines Insurance Pricing

Pictures often speak louder than words and this is most certainly the case as we look at a recent history of  commercial lines insurance  price changes.

The chart, from Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS),  compares the change in prices charged on policies underwritten in the most recent quarter to those charged for the same coverage during the same quarter the prior year.



As we can see, Towers Watson’s survey shows that commercial insurance prices increased an aggregate 3% in the fourth quarter of 2011 – the fourth consecutive quarter during which prices for all  standard commercial lines rose.

Once again, prices for workers compensation and commercial property showed the largest quarterly increases followed closely by general/products liability. Prices for directors & officers liability finally showed signs of stabilizing, Towers Watson said.

Survey data were contributed by 41 participating insurance companies representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).

CLIPS data confirms the ongoing upward trend in commercial insurance rates observed by other surveys.

By the way, the latest edition of Cavalcade of Risk, which features relevant and timely blog posts on a variety of risk management and insurance topics, is hosted by our friends over at Risk Management Monitor, and includes a link to our most recent  post on MarketScout’s latest commercial pricing analysis.

Leave a Reply

Your email address will not be published. Required fields are marked *