Towers Watson Survey Reveals 2% Price Increase for Commercial Lines

June 15, 2015

Commercial insurance prices increased by 2 percent in aggregate during the first quarter of 2015, continuing the trend of moderating price increases that began in first-quarter 2013, according to Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS).

The survey compared prices charged on policies underwritten during the first quarter of 2015 to those charged for the same coverage during first-quarter 2014.


Most insurance lines reported price increases in the low single digits, the survey revealed, with commercial auto and employment practices liability showing the largest increases. However, CLIPS found that commercial property prices continue to show small but stable price decreases. Survey results also indicated large account prices increasing at a lower rate than small and midmarket accounts.

Carriers reported an improvement of 2 percent in loss ratios in accident-year 2015 compared to the same period in 2014, as earned price increases continue to offset reported claim cost inflation for many lines. This builds on the estimated improvement of nearly 2 percent between 2013 and 2014, according to the Towers Watson survey.

Alejandra Nolibos, a director with Towers Watson’s Property & Casualty Insurance practice, said in a statement that “price increases are barely offsetting loss cost inflation in some lines,” adding that “we may start to see pressure on the bottom line as reserve redundancies dry up.”

Source: Towers Watson