Price increases generally are good news for carriers and not so good news for customers, although most companies can tolerate modest increases as a cost of doing business.
Commercial customers will be pleased to learn that, although prices for commercial insurance increased in aggregate, the increase was only 2% during the first quarter of 2015, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS) conducted by global professional services company Towers Watson. This survey compared prices charged on policies underwritten during the first quarter of 2015 to those charged for the same coverage during the first quarter of 2014.
The survey found that price increases for most insurance lines were in the low single digits, with the largest increase coming in commercial auto. The increase in employment practices liability prices remain moderate, however, as do commercial property prices, which still show small price decreases. Large account prices increased at a lower rate than small and mid-market accounts, according to the survey.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
