For the second quarter in a row, U.S. commercial lines insurers enjoyed average rate hikes that neared 10 percent, according to Willis Towers Watson’s Commercial Lines Insurance Pricing Survey for Q3. The rocket ship rate hike trend might be moderating, however.
“While commercial insurance prices continued to rise this quarter at a significant rate, CLIPS data indicate the acceleration in prices observed in recent quarters stabilized somewhat,” said Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson.
As before, Willis Towers Watson tracked excess/umbrella and directors and officers liability insurance as generating the largest price increases. As well, commercial auto produced rate hikes near or above double-digit levels for the 12th consecutive quarter.
Workers compensation coverage continues to be the big exception, producing “modest” price reductions, but Willis Towers Watson said that the downward trend for this line has leveled off a bit in recent quarters.
According to Willis Towers Watson, price changes differed by account sizes with small accounts more muted, mid-market accounts near double digits and large accounts well into double digits.
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. For this most recent survey, 36 participating insurers representing approximately 20 percent of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
Source: Willis Towers Watson