Commercial insurance prices remain flat yet again

According to one global professional services company, not only have loss ratios been confirmed to have deteriorated over the previous year, but commercial insurance prices were found to have remained flat for the ninth quarter in a row.

Finding that business insurance price reductions continued for management liability and commercial property lines, professional indemnity services firm Towers Watson recently published the newest edition of their pricing survey for commercial lines.  However, workers compensation figures show that 2011’s first quarter experienced a modest overall price increase in the wake of relatively flat indications over the past two years, while data gathered by the survey found that some standard commercial lines may also begin to show slight price increases in the future.

Towers Watson property and casualty practice director, Bruce Fell, remarked that the increases in compensation made to workers this quarter are larger than the firm has seen in quite some time.  Mr Fell also said that both general liability and package were showing upticks, with 2011’s second quarter possibly seeing more significant increases due to recent insurance losses related to weather that will most likely firm property prices –  though the overall landscape has seen prices remain flat.

Survey results compared prices charged on insurance policies that were underwritten during 2011’s first quarter to those charged for the identical cover for the same period of time the previous year. 39 contributing insurers participated in the market study, which represents an approximate 20 per cent of the entire commercial insurance marketplace.

2011’s first quarter losses were in the single digits in comparison to 2010 figures, according to preliminary survey findings.  The 2010-2011 financial year’s estimated deterioration over the 2009-2010 time period is thought to be five per cent, Towers Watson said.

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