Commercial insurance prices edged upward slightly for most lines of coverage during the fourth quarter of 2017, a likely impact from rough weather-related claims in the last few months of last year, according to Willis Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS).
However, increases averaged out to be less than one percent on renewals with similar coverage and two lines – workers compensation and directors and officers liability still show premium decreases, WTW found. For commercial property accounts, CLIPS reported increases in the “low single digits” after decreasing prices for most of the last few years.
“Meaningful” premium rises were seen in the commercial auto market, where Willis saw increases approaching double digits.
“Last year’s weather disasters were some of the most financially disruptive in history, and the survey results indicate we’re likely now seeing the initial response to the catastrophes on the pricing side of the property market,” said Pierre Laurin, Willis Towers Watson’s Americas property & casualty sales and practice leader for insurance consulting and technology. “Further, commercial auto rate increases show no signs of abatement, as insurers seek to restore the line to a profitable rate level.”
This story in an excerpt of the original. The content originally appeared in Professional Front Page News.
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Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
