Commercial insurance prices nearly flat (again) during the fourth quarter

Commercial auto bucks aggregate trends with continued price gains

Toronto, ON (Mar. 15, 2016) – Commercial insurance prices continue to moderate, but have yet to sink into negative territory, as aggregate prices increased by less than 1% during the fourth quarter of 2015, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS). Leading global advisory, broking and solutions company Willis Towers Watson conducted the survey, which compared prices charged on policies underwritten during the fourth quarter of 2015 to those charged for the same coverage during the same quarter of 2014.

Consistent with the previous quarter’s results, workers compensation, commercial property, and directors and officers liability reported modest price decreases. Commercial auto showed the largest price increases, with changes for most other lines falling in the low single digits. Price increases were nearly flat for large accounts and mid-market accounts, while small commercial account data indicated continued increases, also modest.

“CLIPS suggests a market still in positive territory as to pricing, but the story is very different by line. For example, we see another quarter of price increases for commercial auto liability — fueled by deterioration in claim costs — while director and officer price decreases, which started a year ago, continue to accelerate as the market competes for the best-performing segments,” said Alejandra Nolibos, director in Willis Towers Watson’s Americas Property & Casualty Insurance practice. “This means a conclusion on pricing for the overall market is hard to interpret, but carriers continue to report modest claim cost inflation for most lines surveyed, which is keeping loss ratio movements in check.”

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at


CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross section of U.S. property & casualty insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This particular survey compared prices charged on policies underwritten during the fourth quarter of 2015 to the prices charged for the same coverage during the same quarter of 2014. For the most recent survey, data were contributed by 41 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).

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