Commercial Insurance Lines Pricing Up 6%, Personal Line Up 3%

A recent insurance industry survey had showed that prices of commercial insurance had experienced its largest hike in eight years.

The Commercial Lines Insurance Pricing (CLIPS) study conducted by Towers Watson reflected that insurance prices from the commercial lines have jumped as high as six (6) percent in the second quarter of this year. Accordingly, all aggregate prices for this line have showed an increase for the sixth consecutive quarters now.

The largest to have experienced priced adjustments are the commercial property and workers’ compensation insurance.

This study was conducted by Tower Watson by comparing prices on insurance policies underwritten within the second quarter of this year, to those prices charged for the same coverage during the second quarter of 2011. The data used were collected directly from different insurance carriers.

It is said that the CLIPS surveyed has been participated by 39 insurers that represents around 20 percent of the commercial insurance market in the United States excluding the state’s workers compensation funds.

On the other hand, MarketScout, a national property/casualty insurance exchange, have reported that personal lines insurance in August 2012 had seen a hike of three (3) percent compared to the personal lines rates in August last year.

According to MarketScout CEO Richard Kerr, homeowners insurance rates from high, moderate and low value homes had experienced an increased of 3 percent. Kerr further stated that seeing a price hike among the three categories in a homeowners business is not common.

MarketScout revealed that rates for homeowners policies for homes whose value is less than $1 million had the said percentage of price hike. This is same with homes whose value is over $1 million.

The MarketScout study also revealed that automobile insurance rates in the same period had experienced an increased of two (2) percent while personal articles had also a 3-percent hike.