Commercial Lines Insurance Pricing Survey (CLIPS)

A Commercial Lines Insurance Pricing Survey (CLIPS) is an annual survey from the consulting firm Willis Towers Watson that reveals commercial insurance pricing trends. It tracks prices charged by over 30 insurance carriers for underwriting business casualty and property insurance policies.

The Commercial Lines Insurance Pricing Survey can be used to track year-over-year variations in policy prices. CLIPS is considered an industry-leading survey and benchmarking tool. Commercial property insurance covers potential financial loss due to damage, theft or loss of real or personal property. Casualty insurance provides financial coverage for the actual business itself. For example, if a business was unable to open because of damage caused by fire, the property insurance would apply to the physical building while the casualty insurance would help compensate for the financial loss created by the interruption in work. Casualty insurance options have grown since the 1990s to include coverage for business interruption due to terrorism, government instability, cyber fraud and identity theft. The variation in policy premiums compose the premise of CLIPS.

Each quarter, companies that participate in the CLIPS provide Willis Towers Watson with premium volume changes in prices for the most recent quarter, for each of the surveyed commercial lines of business they write, as well as their estimate of the changes in loss costs for that business. Towers Watson then computes changes in loss ratios from those price and loss cost movements. 

The data in the survey comes directly from insurance companies’ own price monitoring systems, which makes it a more credible source for benchmarks than other survey information, which are often based on agent and broker perceptions of premium changes.

The data provided by survey participants is segmented by line and by market: small, middle markets and large accounts. Data is also captured separately for specialty lines, such as D&O, E&O, professional liability, employment practices liability and surety. 

The detailed survey results are provided back to participating companies only and are not publicly available. However, Towers Watson does share some aggregate results and directional commentary with the public.

Willis Towers Watson is a leading global advisory, broking and solutions company that helps clients around the world turn their risks into a opportunities for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving more than 140 countries. 

The company designs and delivers solutions for managing risk, optimizing benefits, cultivating talent and expanding the power of capital to protect and strengthen institutions and individuals. The company's unique perspective allows it to understand the critical intersections between talent, assets and ideas.