According to insurance and reinsurance broker Willis Towers Watson’s Commercial Lines Insurance Pricing Survey, commercial insurance prices in the U.S. in Q2 2018 increased by almost 3%.
The broker states that price changes of this level have not been reported for almost four years, with price changes for most lines being higher in the second-quarter than those reported in the first-quarter.
Material price increases were seen in commercial auto, commercial property and excess / umbrella liability, says Willis Towers Watson.
Ben Williams, Director, pricing, product, claims and underwriting practice, North America, Willis Towers Watson, said: “Almost all lines show a more rapid pace of price increases. Notably, mid-market and large accounts prices have recently seen the largest increases. This is fodder for thought, as the history of CLIPS suggests that larger accounts have been leading indicators of market adjustments.”
According to the broker’s pricing survey, commercial property prices now show increases in the low-to-mid single digits for the third quarter running. Commercial auto remains the outlier, says the survey, with meaningful price increases at or near double digits for the third quarter in a row.
By account size, the survey reveals that price changes were positive and nearly identical across all segments.