• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Sign Up
  • Contact Us
  • Advertise
  • Sponsor An Email

Agency Checklists

Massachusetts-inspired Insurance News & More

  • Career
    • Announcements
    • Post An InsurJob
    • Find an InsurJob
    • Post Your Profile
  • Checklists
    • Applying For An Agency Loan
    • Deciding Whether or Not to Outsource Your Customer Service?
    • Employment Contracts & The Non-Compete Clause In Massachusetts
    • Hiring An Insurance Producer In Massachusetts
    • Insurance Agent to Agency Loans In Massachusetts
    • Moving Your Massachusetts Insurance Agency
    • Opting To Use Premium Financing In Your Massachusetts Insurance Agency
    • Purchasing An Agency
    • Remuneration Audit Checklist
    • Selling Your Massachusetts Insurance Agency
    • When The Auditor Calls
    • Why, When, & How An Agent Should Use A Business Broker
    • Starting A Massachusetts Insurance Agency
  • Data
  • Events
  • InsurShop
    • Insurance Books
      • Innovation Titles
      • Improvement
      • Leadership
      • Licensing
      • Marketing
      • Sales
    • Insurance Films
    • Insurance Glossary
  • Partners
    • How Thrifty Benefits Your Agency
You are here: Home / Mass Insurance News / Commercial Pricing Picks Up Speed in Q2-2018

Commercial Pricing Picks Up Speed in Q2-2018

September 25, 2018 by Julia Ybarra

CLIPS is Willis Tower Watson’s quarterly U.S. Commercial Lines Pricing & Profitability Survey

Commercial insurance prices across the country saw almost a 3% increase during the Q2-2018, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS). It has been nearly four years since price changes of this magnitude have been reported.

“Almost all lines show a more rapid pace of price increases,” said Ben Williams, director, pricing, product, claims and underwriting practice, North America, Willis Towers Watson. “Notably, mid-market and large accounts prices have recently seen the largest increases. This is fodder for thought, as the history of CLIPS suggests that larger accounts have been leading indicators of market adjustments.”

A visual representation of commercial pricing changes during the second quarter of the past 15 years

For a clearer picture of how commercial lines pricing has shifted, the following graph depicts the movement in pricing during the second quarters of the years 2003-2018:

Agency Checklists, MA Insurance News, Mass. Insurance News, Commercial Insurance prices Q2-2018, commercial insurance pricing survey CLIPs
Change in price level vs. same quarter one year prior. Graph courtesy of CLIPS survey

Take-aways from this quarter’s survey

The following are some of the other major takeaways Towers Willis Watson highlighted for this quarter:

  • Price changes for nearly all lines were higher in the second quarter compared to those reported in the first quarter of 2018.
  • Commercial auto, commercial property and excess/umbrella liability all indicated material price increases.
  • Commercial property price data, which had been showing small price decreases recently, now shows increases in the low- to mid-single digits for the third consecutive quarter.
  • Commercial auto continues to be the outlier, with meaningful price increases at or near double digits for the third consecutive quarter.
  • CLIPS data indicate that workers compensation is the only standard surveyed line with ongoing price reductions.
  • When comparing the survey results by account size, price changes were positive and nearly identical across all segments, as mid-market and large account commercial price change data caught up to the recently larger increases reported for small accounts.

 A little more about CLIPS

The CLIPS study is conducted and compiled each quarter by Willis Tower Watson, from information obtained directly from carriers. It compares prices charged on policies from Q2-2018 as compared to prices of policies for the same coverage during the same quarter of 2017. In addition to providing “a retrospective look” at the historical changes in commercial P&C prices, it also take a look at claim cost inflation as well.

Filed Under: Mass Insurance News Tagged With: clips survey, Commercial Pricing, ma insurance news, Mass. Insurance News

Comments & Updates

  • Don Eaton on Massachusetts Has A Hands-Free Driving Law: Four Items Everyone Needs To Know
  • Frank Lombard CPCU ARM on CT Decision Against Crumbling Foundation Coverage—Bad News for Some Massachusetts Homeowners
  • Deborah Rose on Mass. Agent Lee Gaudette Presented With The MAIA’s Highest Honor This Year
  • Kevin Giovanucci on MAIA Announces Its New Board of Directors
  • Steve Aronson on The Massachusetts Insurance Industry Comes Out In Full Force To Celebrate Nancy Bender

Reader Interactions

Primary Sidebar

Post A Job

Massachusetts Insurance Jobs

Click To View This Job

Career News

Concord Group Hires Dan Reardon, insurance career news masaschusetts

The Concord Group Expands Massachusetts Team

Arbella Appoints Susan Kostro as Senior Vice President of Commercial Lines

insurance agency mergers & acquisitions

Insurance Agency Consulting Firm OPTIS Partners Names Germundson Partner

View More Career News

AC In Your Inbox

2019 Massachusetts Market Share Reports

Market Share Information About The Massachusetts Insurance Industry

Latest Agency Sales

The HIlb Group is Sold To The Carlyle Group

The Hilb Group Is Sold To The Carlyle Group

G&N Insurance Acquired by the Hilb Group

The Hilb Group Acquires Southborough-based G&N Insurance

The Hilb Group Is For Sale

The Hilb Group Up For Sale For A Reported $1 Billion-Plus

M&A Activity Massachusetts Q3-2019

Massachusetts Insurance Agency Mergers & Acquisitions, Q3-2019

More Agency Sales

Massachusetts Law Updates

Agency Checklists, MA Insurance News, Mass. Insurance News

An Insurer’s $17k Ice Dam Damage Offer And 137k Referees’ Award For Sherborn Couple Not An Unfair Claim Practice Court Finds

Paul and Linda DeRensis filed suit over the handling of their ice dam claim for their home in Sherborn.

After signing bill, Massachusetts Governor Charlie Baker congratulating legislators and family members who supported the hands free driving law banning holding cell phones while driving.

Massachusetts Has A Hands-Free Driving Law: Four Items Everyone Needs To Know

The new hands free driving law includes a surcharge provision and will go into effect on Sunday, February 23, 2020, ninety days from November 25th.

Picture of house jacked up to remove foundation

CT Decision Against Crumbling Foundation Coverage—Bad News for Some Massachusetts Homeowners

A recent decision from the Connecticut Supreme Court released may have a direct effect on homeowners in the Western part of Massachusetts.

Commerce Avoids $2.5 Million Interest Liability With Decision Benefiting Liability Insurers

The Massachusetts Supreme Judicial Court decision limits the scope of an insured’s assignment of rights against their carrier, The Commerce Insurance Company.

More Mass. Law Updates

CAR News

4th Look 2019: The Private Passenger Auto Insurance Marketplace in Massachusetts

4th Look 2019: The Commercial Auto Insurance Marketplace In Massachusetts

3rd Look 2019: A Bi-Monthly Look At The Private Passenger Auto Insurance Marketplace in Massachusetts

3rd Look 2019: The Commercial Auto Insurance Marketplace in Massachusetts

View More CAR News

DOI News

DOI Schedules Hearing On CMR 26.00 Annual Financial Reporting For Years Ending 2010 and After

Mass. Division of Insurance Upholds Commerce’s Cancellation Of Shannon Insurance’s Commercial Auto Contract

Division of Insurance Dismisses Point Insurance’s Complaint Against Arbella For Improper Practices

Insurance Producer Who Lost Home State License For False Applications Fined $750 In Massachusetts For Failing To Report

View More DOI News

Insurance Fraud

Salem Man’s Insurance Fraud Scheme Ends In Indictment

Mass. Agent Who Disappeared With Insureds’ Premiums Surrenders License And Avoids Fines

Worcester Temporary Staffing Co. Owner Indicted For Workers’ Compensation Premium Fraud

Former Newton PTO Treasurer Charged With Numerous Fraudulent Schemes Including Filing False Insurance Claims

More Insurance Fraud News

Footer

About us
Contact us

14 Summer Street
Suite 104
Malden, MA 02148
617-598-3800
info@agencychecklists.com

Advertise on Agency Checklists

We offer a variety of ways to get help promote your company or product.

Announcements
Email Sponsorships
Partnerships
Custom Collaborations

*Affiliate Disclosure

Please note that any of Agency Checklists’ articles might contain one or more affiliate links. This means that any subsequent purchase resulting from these links may result in a commission for us, but at no additional cost to you. For example, as an Amazon Associate, Agency Checklists earns a commission from all qualifying purchases. By working with affiliates we can continue to keep Agency Checklists subscription free. Thank you for your support.

SEARCH OUR SITE

Explore Our Archives

Copyright © 2019 · Agency Checklists · All rights reserved.