According to the results of a newly released data report that verified the 2010 accident year’s deterioration of loss ratio, commercial insurance prices have remained pretty much the same for nine quarters in a row.
The latest Commercial Lines Insurance Pricing Survey (CLIPS) by Towers Watson – the global professional services company – showed that management liability and commercial property lines have both continued to show decreases in price.
That said, following the sizeable price reductions and then the comparatively flat indications since the start of 2011, the data involving workers’ compensation suggested a moderate overall increase in price over this year’s first quarter. There was also some data from CLIPS that showed a small increase in price among some standard commercial lines.
According to the director of the Americas for Tower Watson’s Property & Casualty practice, Bruce Fell, “The increases in workers’ compensation prices this quarter are larger than we’ve seen in quite some time, and package and general liability are also showing upticks.”
Fell went on to explain that though the image overall continues to indicate that the prices have remained flat, there have been some indicators from the various movements, along with the insurance losses connected to weather, that are leading to predictions of solidification of the property prices. In 2011’s second quarter, they may lead to more notable increases.
The data produced for Tower Watson’s report was collected through the use of a survey in which 39 insurance companies participated. This sample represented about 20 percent of the marketplace for commercial insurance. It compared the prices for policies underwritten during the first quarter of 2010 with those from the same quarter in 2011.