Commercial lines prices continued to increase in second quarter this year

Commercial insurance prices increased 3% during the second quarter of this year across all lines, according to a new survey from Towers Watson.

The firm’s Commercial Lines Insurance Pricing survey is based on data from seven Canadian insurers and groups, which represent approximately 20% of the Canadian commercial insurance market.

Among those participants, the largest price increase was reported for the general/products liability lines, followed by commercial auto and property lines. Price changes for all lines were in the low-single digits, according to the CLIPS report.

Based on historical claim cost information from the participants included in the report, loss ratios in the accident year 2014 deteriorated 32% compared to 2013.

“This figure is affected by some unusual data points; the unweighted mid-point of the estimates is a 15% deterioration in loss ratios,” the report notes.

“We note that as year-to-date survey results provide a preliminary perspective, a subset of the participants provide claims cost inflation and as claims results can be volatile, insurers will wish to review and monitor additional data as it becomes available.”