U.S. commercial insurance rates showed a continued upward trend with signs of moderation in the fourth quarter of 2024, according to the latest findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten during the fourth quarter of 2024 to those for the same coverage in the respective quarter of 2023, providing a year-over-year perspective.
Carriers reported an aggregate price increase of 5.6% in the fourth quarter, down from the rate of 6.1% recorded in the third quarter of 2024.
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While overall rates showed a moderate slowdown, significant changes were observed in specific coverage lines. Excess/Umbrella Liability recorded its highest price increase in the past three years, while Commercial Auto recorded its highest price increase in the entire history of CLIPS, continuing to rise in double digits.
Commercial Property experienced the most notable shift this quarter, though a moderate price increase, significantly lower than prior quarter. Rate increases for mid-market accounts continued to moderate, extending the trend from the previous quarter. Small accounts also saw lower price increases compared to the prior quarter, while price increases for large accounts remained virtually unchanged.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, “The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters. Lines such as Commercial Auto and Excess/Umbrella Liability continue to see notable price increases, while the Commercial Property market experienced a significant slowdown in pricing adjustments. These trends underscore key shifts within the commercial insurance landscape.”
CLIPS is a retrospective look at historical changes in Commercial Property & Casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of Commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
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Tags: insurance, Small Business
