US commercial insurance prices increased by nearly 5% during the first quarter of this year, according to a new pricing survey by actuaries Towers Watson.

This was the fifth consecutive quarter that premiums rose for all standard commercial lines with the largest price increases in workers’ compensation and commercial property.

Workers’ compensation prices increased for the fifth consecutive quarter, after flat pricing during 2010, while commercial property prices rose for the fourth consecutive quarter.

Towers Watson Practice Leader for the Americas Thomas Hettinger says there is a continuing trend for price increases in commercial lines.

“This quarter, the industry reached… the largest quarterly increase we’ve seen since 2004,” he said.

“Price increases were observed across all account sizes for standard commercial lines, with the most significant increases observed in mid-market accounts.”

Insurers’ loss ratios declined by less than 1% during the quarter, compared to an estimated 3% deterioration in ratios between 2010 and 2011.

Data from the lines with the largest price increases – workers’ compensation, commercial property and general/product liability – indicate improving loss ratios, Mr Hettinger says.