US Commercial Insurance Prices Increase 2 Percent 1Q 2019

US commercial insurance prices have increased in the first quarter of 2019 according to Willis Towers Watson's latest Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the first quarter of 2019 to those charged for the same coverage during the same quarter in 2018. The price change reported by carriers for the quarter was just above 2 percent.

Price changes for most lines were similar to or slightly above those reported last quarter. Four standard lines indicated material price increases: commercial auto, commercial property, excess/umbrella liability, and directors and officers liability. The outlier in the survey results continues to be commercial auto, where significant price increases were again reported—in the double digits for the fourth consecutive quarter. Price changes were positive and of reasonably similar magnitude across all account sizes.

"Overall, price changes were consistent with recent surveys, with the exception of directors and officers liability, where data now indicate an uptick of price increases into the mid-single digits," said Jeffrey Carlson, director, insurance consulting and technology, Willis Towers Watson. "Also, while estimates of 2018 claim cost inflation are still elevated compared to the recent past, they have moderated somewhat from estimates provided in our last survey, as the data continue to mature."

The chart below from Willis Towers Watson reflects the change in price level versus the same quarter 1 year prior.