Commercial Insurance Prices Continued to Increase During Fourth Quarter

March 13, 2012 / Elizabeth Buckley, Commercial Property Analyst

There has been an increase in the cost of commercial insurance in the last quarter of 2011. The amount was an aggregate 3 percent. This is the fourth quarter in a row when prices increased for the commercial lines that were standardized. The data showed for compensation for workers and  compensation and real estate in the commercial category had the biggest price increases. The liability for general products was a close third. Workers compensation continued to go up in the fourth quarter of 2011.

Commercial Insurance Prices Continued to Increase During Fourth Quarter

The increases may be modest, but do show an increase in each successive quarter. With specialty lines relatively flat, stabilization seems imminent. All accounts, from small to large, exhibited price increases. Those accounts considered mid-market had the biggest increases.

There was a favorable percentage of deterioration in 2011 as compared to 2010, which was 5 percent over the 2009 ratio. Price increases are expected to be made to compensate for the losses. Data is dependent on new and renewal figures from insurance underwriters. The survey in question compared policy prices from 2011 to those from 2010. A cross section was represented in the body of insurance groups used in the survey.

Different segments of the insurance industry were tracked by the surveyors. Different business types and account sizes were included representative of the insurance industry as a whole. A leading company provides professional services to improve the performances of all facets of a business in the area of employee benefits, risk and management of capital.

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