US commercial insurance prices have increased in the first quarter of 2019, according to global re/insurance brokerage Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS).
The aggregate commercial price change reported by carriers was close to 2% for all four quarters of 2018, and came in just above 2% in the first quarter of 2019.
Price changes for most lines were similar to or slightly above those reported last quarter. Four standard lines indicated material price increases: commercial auto, commercial property, excess/umbrella liability, and directors and officers liability.
The outlier in the survey results continues to be commercial auto, where significant price increases were again reported — in the double digits for the fourth consecutive quarter. Price changes were positive and of reasonably similar magnitude across all account sizes.
“Overall, price changes were consistent with recent surveys, with the exception of directors and officers liability, where data now indicate an uptick of price increases into the mid-single digits,” said Jeffrey Carlson, director, Insurance Consulting and Technology, Willis Towers Watson.
“Also, while estimates of 2018 claim cost inflation are still elevated compared to the recent past, they have moderated somewhat from estimates provided in our last survey, as the data continue to mature.”
CLIPS is a retrospective look at historical changes in commercial property & casualty (P&C) prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in Willis Towers Watson’s Marketplace Realities series.