WTW announced that US commercial insurance rates increased by 6.1% in the third quarter of 2024.
The findings, based on the company’s Commercial Lines Insurance Pricing Survey (CLIPS), reflect a slight rise from the 5.9% increase reported in the previous quarter and match the 6.1% rise seen in Q3 2023.
The survey compares prices for commercial insurance policies written in the third quarter of 2024 to those for the same coverage in the third quarter of 2023. It provides a year-over-year perspective on pricing trends across lines of business.
According to WTW, sectors such as package commercial multi-peril (CMP) and business owners policies (BOP) recorded their highest price levels in over a decade. While small and large accounts experienced price increases, mid-sized accounts saw slightly more moderation.
Commercial property rates showed signs of stabilization after a period of significant increases, reflecting adjustments in market conditions. Meanwhile, workers’ compensation, commercial auto, and excess/umbrella liability continued to demonstrate consistent pricing trends, pointing to varying dynamics across different lines and account sizes.
Yi Jing (pictured above)`, senior director of insurance consulting and technology at WTW, noted that the findings highlight ongoing shifts in the commercial insurance market.
“Sectors like commercial auto and excess/umbrella liability continue to face pricing pressures, while others, such as commercial property, are stabilizing. These developments highlight a market in transition, as insurers adapt to evolving risks and economic conditions,” Yi said.
CLIPS provides a retrospective analysis of changes in commercial property and casualty (P&C) insurance pricing and claims cost inflation.
The CLIPS survey incorporates data from both new and renewal business submitted directly by participating insurers. These carriers represent a cross-section of US P&C insurers, including many of the top 10 commercial lines companies and top 25 insurance groups.
For the most recent survey, 43 insurers, representing approximately 20% of the US commercial insurance market (excluding state workers’ compensation funds), contributed data.
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