Loss ratios to rise on full-year results to reflect falling rates

Towers Perrin survey pitches the average premium deductions lower than other industry research

A quarterly survey of US commercial lines insurance pricing and profitability shows that average prices for all lines of coverage combined fell 4% to 5% between 2006 and 2007. At the same time, the survey – produced by Connecticut-based broking and consulting group Towers Perrin – suggests that loss ratios for commercial lines insurers in 2007 are expected to be higher than the previous year as the continuing falls in premium rates were not matched by a decline in claims costs.