Insurance Pricing

Car insurance is no longer getting cheaper. The average cost of cover rose 1% between March and May, according to WTW, marking the first quarterly increase in more than two years. The move matters because it may point to an inflection point for the industry. After an extended stretch of easing premiums, even a modest rise can signal that pricing pressure is beginning to shift. What WTW Says The Data Shows WTW said Wednesday that the latest quarterly change breaks a run of declines that had lasted for more than two years. The broking company described the shift as potentially significant for insurers and policyholders alike. That does not mean premiums are surging, but it does show the market may be changing direction. For drivers, the increase is a reminder that a period of falling costs may be ending. Why The Turnaround Matters Insurance pricing often moves gradually, so a small increase can still attract attention when it follows a long downtrend. If the trend continues, insurers could begin to feel more confident about pricing after a prolonged period of softness. WTW’s update does not give a broader forecast, but its wording suggests the company sees the latest increase as more than a routine monthly fluctuation. The quarterly rise is the clearest sign yet that the market may be entering a new phase. Read more at: www.law360.com

Car Insurance Premiums Turn Higher, Signaling A Possible Inflection Point