US Commercial Insurance Prices Maintain Upward Path

US commercial insurance prices accelerated as the aggregate price change reported by insurers exceeded 4 percent year over year for the third quarter, according to Willis Towers Watson (WTW).

WTW found significant price increases for commercial auto, commercial property, excess/umbrella liability, and directors and officers (D&O). While reductions occurred for workers compensation, they were more modest in the third quarter than in prior quarters. WTW also found that price changes were more pronounced for large accounts than those reported for small and midmarket accounts. Furthermore, specialty lines price increases also trended upward significantly.

"This quarter we saw the largest overall price shift since 2013," said Alejandra Nolibos, senior director, insurance consulting and technology, Willis Towers Watson. "Price increases for D&O liability are well into the double digits, with employment practices liability and medical professional liability also showing sizable upward shifts.

She added, "Commercial auto did not let up, with insureds looking at double-digit increases again. CLIPS [the WTW pricing survey] confirms insurers have been responding to worsening loss trends across affected lines through pricing; other sources suggest terms and conditions have tightened. The question is whether and when workers compensation loss trends will turn, too."