Price declines for commercial insurance may not be nearly as steep as the double-digit cuts being reported in a variety of industry surveys, according to study by Towers Perrin based on firsthand data from carriers.
The Stamford, Conn.-based consulting firm said it believes it has better data to support its report on quarterly “Commercial Lines Insurance Pricing and Profitability” trends–its CLIPS survey–which found that average prices for all lines of coverage combined decreased only 4-to-5 percent between 2006 and 2007.
Survey data for the third quarter of 2007 indicated an average price cut of about 5 percent, with large accounts and specialty insureds experiencing the largest decreases–nearly 9 percent, on average.
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