Aggregate second-quarter commercial insurance prices were up 6 percent compared to the same time a year ago, according to Towers Watson.
The latest results of the company's Commercial Lines Insurance Pricing Survey (CLIPS) marks the tenth consecutive quarter for price increases.
According to the survey, workers compensation and employment practices liability lines saw the largest price increases, but most lines had mid to upper-single digit increases.
Tom Hettinger, Towers Watson's P&C sales and practice leader for the Americas, observes “tempered” price increases in property insurance during the second quarter and taking into account reinsurance renewal pricing, he would “not be surprised to see a repeat in the third quarter, especially if we continue to see favorable windstorm experience.”
No line had price increases of less than 4 percent during the second quarter, says the survey, which compares prices charged on policies underwritten during the quarter to policies written during the same quarter last year.
Towers Watson observes an improvement among survey participants of between 3-6 percent in loss ratios in accident year 2013 to date, excluding catastrophes, compared to year-to-date 2012.
“Although carrier estimates of claim cost inflation remain relatively low, the potential for greater inflation over the medium term looms and may give the steady price increases we've been experiencing some additional staying power,” says Hettinger.
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