Aggregate second-quarter commercial insurance prices were up 6percent compared to the same time a year ago, according to TowersWatson.
|The latest results of the company's Commercial Lines InsurancePricing Survey (CLIPS) marks the tenth consecutive quarter forprice increases.
|According to the survey, workers compensation and employmentpractices liability lines saw the largest price increases, but mostlines had mid to upper-single digit increases.
|Tom Hettinger, Towers Watson's P&C sales and practice leaderfor the Americas, observes “tempered” price increases in propertyinsurance during the second quarter and taking into accountreinsurance renewal pricing, he would “not be surprised to see arepeat in the third quarter, especially if we continue to seefavorable windstorm experience.”
|No line had price increases of less than 4 percent during thesecond quarter, says the survey, which compares prices charged onpolicies underwritten during the quarter to policies written duringthe same quarter last year.
|Towers Watson observes an improvement among survey participantsof between 3-6 percent in loss ratios in accident year 2013 todate, excluding catastrophes, compared to year-to-date 2012.
|“Although carrier estimates of claim cost inflation remainrelatively low, the potential for greater inflation over the mediumterm looms and may give the steady price increases we've beenexperiencing some additional staying power,” says Hettinger.
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