U.S. commercial insurance carriers report aggregate price changes of over 6% for Q1
According to Willis Towers Watson's Commercial Lines Insurance Pricing Survey, U.S. commercial insurance prices rose over 6% in Q1 2020, marking the second consecutive quarter of price increases. Various insurance lines, including directors’ and officers’ liability and excess/umbrella, reported significant double-digit increases. Small commercial accounts saw minimal price changes, while mid-market and large accounts experienced higher increases. The report noted that first-quarter statistics may not fully reflect COVID-19 impacts, with ongoing analysis expected to determine future premium trends.
- U.S. commercial insurance prices increased over 6% in Q1 2020.
- Significant double-digit price increases were observed in key lines such as directors’ and officers’ liability, and excess/umbrella.
- Results indicate ongoing trends of higher prices across mid-market and larger accounts.
- Price increases for small commercial accounts were muted compared to larger accounts.
- First-quarter statistics may not accurately capture the effects of COVID-19 on the market.
ARLINGTON, Va., June 08, 2020 (GLOBE NEWSWIRE) -- U.S. commercial insurance prices increased significantly during the first quarter of 2020 compared with prices charged during the first quarter of 2019, according to leading global advisory, broking and solutions company Willis Towers Watson’s (NASDAQ: WLTW) Commercial Lines Insurance Pricing Survey. The aggregate price change reported by carriers exceeded
Data for nearly all lines indicated a rise in prices, some significant, with double-digit increases for directors’ and officers’ liability, excess/umbrella, commercial auto and property. For most other lines, price changes were consistent with those observed in the prior quarter. When comparing account sizes, price changes varied: muted for small commercial accounts and higher across mid-market accounts, with large accounts nearing double digits.
“During the first quarter of 2020 we saw a continuation of substantial price increases for excess/umbrella and directors’ and officers’ liability,” said Alejandra Nolibos, senior director, Insurance Consulting and Technology, Willis Towers Watson. “Focusing on workers compensation, carriers reported reductions once again. That said, first quarter statistics are unlikely to reflect reactions to the short and midterm impacts of COVID-19, among them changes in task and employment mix and the economic situation. Ongoing analyses of detailed data on emergence and exposures, coupled with carriers’ outlooks for the environment and a refreshed interest in the role of systemic events in this class, will be important determinants of premium trends in the future.”
CLIPS is a retrospective look at historical changes in commercial property and casualty insurance (P&C) prices and claim cost inflation. A forward-looking analysis of commercial P&C trends, outlook and rate predictions can be found in Willis Towers Watson’s Insurance Marketplace Realities series.
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 45,000 employees serving more than 140 countries and markets. 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 willistowerswatson.com.
About CLIPS
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. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the first quarter of 2020 with the prices charged for the same coverage during the same quarter of 2019. For this most recent survey, 38 participating insurers representing approximately
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Ileana Feoli: +1 212 309 5504
ileana.feoli@willistowerswatson.com
FAQ
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