A fragile global economy, excess capacity in virtually every line of commercial insurance and a quiet 2009 catastrophe year combined to keep commercial insurance prices flat during the first quarter of 2010, according to Towers Watson’s most recent Commercial Lines Insurance Pricing Survey (CLIPS).
The latest results mark the fifth consecutive quarter of little or no price increases after nearly five years of steady decreases.
Data for most lines indicate flat or small increases in prices, offset by price reductions in commercial property, directors and officers liability (D&O), and employment practices liability (EPL), according to Towers Watson.
Looking at D&O, it observed that price increases seen in the past year due to the financial crisis have disappeared, and pricing seems to be reverting back to pre-crisis levels.
CLIPS preliminary findings also indicate that accident year to date 2010 loss ratios deteriorated 5 percent relative to year to date 2009. Early estimates of claim costs […]

Read the rest of this great post here