US commercial insurance prices accelerated during the fourth quarter of 2019, according to re/insurance broker Willis Towers Watson (WTW), as the aggregate price change reported by carriers exceeded 6%.
The result continues a trend of acceleration that has been observed over recent quarters, the firm found as part of its Commercial Lines Insurance Pricing Survey (CLIPS).
Data for nearly all lines indicated significant price increases, headlined by commercial auto, property, excess/umbrella liability, and directors’ and officers’ liability, where price increases exceeded double digits.
Price changes generally tended to be were larger for mid-market and large accounts than small accounts.
In contrast, workers’ compensation continued to be the only surveyed line were prices were reduced, although by a smaller degree than they have been in the past.
“We saw another large overall price increase in the fourth quarter,” said Alejandra Nolibos, senior director, Insurance Consulting and Technology, Willis Towers Watson.
“Even workers compensation prices, which had been decreasing substantially recently, are moderating, a trend that we have observed throughout 2019 — despite the continued large price drops for California business.”
