January 26, 2021.

(Arlington, VA, Economic & Insurance News by Insurance Market 360) – Survey conducted by Willis Towers Watson, the leading Global Consultants with 36 commercial Insurers reported that the premium cost is increased by 10% on aggregate in the third quarter of 2020. The participated companies hold a share of 1/5th of total trade insurance policies. Examination was conducted on the premium rate for the same coverage in the third quarters of 2020 and 2019.

Major increase is observed in Excess/Umbrella directors and officers risk coverage. Trade Automobiles witnessed consecutive twelfth two digit increase while reasonable improvement is seen in Outlier in the last consecutive seven quarters. There is no significant change observed in small scale commercials but two digit excess is found in medium and big size commercial insurance premiums.

In this regard, Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson opined that, “While commercial insurance prices continued to rise this quarter at a significant rate, CLIPS data indicate the acceleration in prices observed in recent quarters stabilized somewhat,” Further,  “The price change level holding steady occurs despite the tethering impact of past workers compensation price reductions waning.”

Concept of CLIPS is all about analysing and review of the past data, business activities, general insurance cost and policy settlement ratio including the cost inflation of the claims. Further details regarding the price variations can be procured from the official portal of the lead agency, www.willistowerswatson.com

Source: Willis Towers Watson

Reference: https://www.willistowerswatson.com/en-US/News/2020/12/US-commercial-insurance-prices-again-increase-significantly-during-Q3