Friday, August 1, 2025
23.6 C
Lagos

U.S. Commercial Insurance Prices Rose Almost 10% in Q2

Mr. O. S. Thomas

Commissioner for Insurance

National Insurance Commission (NAICOM)

U.S. commercial property/casualty insurance prices rose during the second quarter of 2020 by almost 10% compared with prices charged during the same quarter of 2019.

Excess/umbrella and directors’ and officers’ liability data indicated the largest price increases, with prices for both growing by over 20% for the second consecutive quarter

These findings are based on insurance broker Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the second quarter of 2020 to those charged for the same coverage during the same quarter in 2019.

Carriers reported that the aggregate commercial price change grew by almost 5% in the third quarter of 2019, over 6% for the 4th quarter of 2019 and first quarter of 2020, and then jumped to just under 10% in the second quarter.

Commercial auto data indicated price increases near or above double digits for the 11th consecutive quarter. Property prices accelerated significantly in the past four quarters, now indicating increases well into the double digits.

Only workers’ compensation showed price reductions, and they continue to slowly decrease in magnitude.

Overall, price changes differed significantly by account sizes. Small commercial accounts grew by mid-single digits; mid-market accounts showed double-digit increases, and large accounts were well above this range.

“Second quarter data indicated the biggest quarter-to-quarter shift in CLIPS history, dating back to 2003, and underscoring the uncertainty of the day,” said Jeffrey Carlson, director, Insurance Consulting and Technology, Willis Towers Watson. “The combination of social inflation, civil unrest, the economy and uncertainty around COVID-19 has created an increasingly cautious industry.”

spot_img
spot_img

Hot this week

NCDMB Leads Push for Homegrown Talents at Chevron-funded HCD Graduation

The Nigerian Content Development and Monitoring Board has reaffirmed...

Linkage Assurance Reports 50% Revenue Growth in 2024

L-R: Funkazi Koroye-Crooks, Non-Executive Director; Moses Omoregbe, Company Secretary;...

Heirs Insurance Unveils Creators Fellowship, Partners with Influencers to Drive Insurance Literacy

L-R: Joseph Onaolapo (Jay On Air), Oluwadamilola Bello (Dammy B) As...

Two NCDMB Leaders Bag Doctorate Degrees at UNIPORT Convocation

Two senior officials of the Nigerian Content Development and...

Sovereign Trust Insurance Reports 109% Insurance Revenue Growth in 2024

Sovereign Trust Insurance Plc recently released its 2024 audited...

Topics

Stanbic IBTC Trustees: ‘Educating Every Nigerian Child Our Priority’

Stanbic IBTC Trustees Limited, through the Stanbic IBTC Education...

Fidelity Bank Boosts Learning with Donations to Govt Sec. School, PH

L-R: Team Lead, Human Resource and Business Partner East...

Leadway Pensure Chairman, Olusegun Aganga, Joins Board of Technoserve

 The Board Chairman, Leadway Pensure PFA, Nigeria's foremost Pension...

Equities Market Suffers Dead Cat Bounce… NSE ASI Down 1.0%

The gain recorded in the Nigerian equities market yesterday,...

NESG to FG: Hunger is Ravaging Nigerians, Overhaul Agric Policy

The Nigerian Economic Summit Group (NESG) has raised alarm...

The Anti-corruption War: How Far Can Buhari Go?

From all indications so far, President Muhammadu Buhari is proving to be a man of his word. Indeed, it is worth recalling that throughout the period he contested for the presidency over the years and the 2015 electioneering campaign in particular, waging war on corruption was one of his key policy points.

Pension: New Compliance EXCO to Address Industry Challenges

The newly elected compliance executives of the pension industry...

Ecobank Unveils “EPAC Studios” to Promote Africa’s Creative Industry

Ecobank Nigeria has opened a creative studio for the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img