Commercial insurance premiums in the US are flat for the sixth consecutive quarter, according to Towers Watson’s latest pricing survey.

The specialist advisory company says prices declined 1% during the second quarter of this year. While most lines show flat premiums, commercial property, directors’ and officers’ and employment practices liability registered reductions.

But US insurers using predictive modelling in their pricing and risk selection saw price levels hold, and reported slight price increases. Insurers without predictive modelling saw price decreases greater than the overall decline of 1%.

This survey marks the first time Towers Watson has queried respondents on their use of predictive modelling.

“The bottom line is that effective predictive modelling enhances underwriting and pricing profitability,” Towers Watson’s practice leader Bruce Fell said. “The commercial lines insurers that are taking advantage of predictive modelling are finding new rating variables and sources of data, and are applying the results in new and innovative ways.”