Data from Willis Towers Watson’s (WTW) latest Commercial Lines Insurance Pricing Survey shows that the majority of business lines indicated significant price increases in the third-quarter of 2019.
Overall, U.S. commercial insurance prices accelerated in the quarter, with carriers reporting an aggregate price change of more than 4%.
Insurance and reinsurance broker WTW’s survey compares price changes on policies underwritten during Q3 2019 to those of the same coverage during Q3 2019, and reveals that only workers’ compensation business reported price reductions.
The broker states that data for commercial auto, commercial property, excess/umbrella liability and directors and officers (D&O) all indicated significant price increases.
Alejandro Nolibos, Senior Director, Insurance Consulting and Technology, WTW, said: “This quarter we saw the largest overall price shift since 2013. Price increases for D&O liability are well into the double digits, with employment practices liability and medical professional liability also showing sizable upward shifts. Commercial auto did not let up, with insureds looking at double-digit increases again.
“CLIPS confirms insurers have been responding to worsening loss trends across affected lines through pricing; other sources suggest terms and conditions have tightened. The question is whether and when workers compensation loss trends will turn, too.”
By account size, WTW notes that price changes during the third-quarter of 2019 were more pronounced for large accounts than those reported for both small and mid-market accounts. At the same time, specialty lines price increases trended up significantly, explains the broker.