Willis Towers Watson’s most recent U.S. Commercial Lines Insurance Pricing Survey (CLIPS) shows commercial lines have remained mostly flat or shown very modest change, but auto lines remain the stand out business segment with significant price hikes.
After comparing 2017 first quarter prices with those from the same period last year, the CLIPS survey said price changes have averaged less than 1% for the sixth consecutive quarter – showing an overall nearly flat pricing trend.
According to the Willis survey, a moderate trend of commercial lines price increases began in the 2013 first quarter, although auto lines have been the only business segment with continued significant price hikes.
Four lines of commercial cover went against the upwards trend, showing modest price decreases – workers compensation, commercial property, directors and officers, and surety – although these still remained consistent with existing patterns of price change.
Commenting on survey results Serhat Guven, Americas Property & Casualty sales practice leader, Willis Towers Watson, said; “Despite ample capital and benign claim cost inflation trends, the commercial P&C insurance market has exercised considerable discipline as a whole over the past couple of years.
“Insurers have held the line on trading profitability for volume, while still responding as needed to emerging trends, e.g., commercial auto on the high end and workers compensation on the low end.”