The latest data from WTW indicates that US commercial insurance rates experienced a 5.9% rise in the second quarter of 2024.
The findings come from the brokerage’s Commercial Lines Insurance Pricing Survey (CLIPS) for Q2, showing a modest deceleration from the 6.3% rate reported by insurance carriers in Q1 of 2024 and 6.1% during the same period last year.
The quarterly CLIPS survey by WTW offers a retrospective view of historical price movements in the commercial property and casualty insurance space, as well as claims cost inflation.
The slowdown in overall commercial insurance price increases was primarily due to a notable reduction in the growth of commercial property rates. The sector, which had seen strong price hikes earlier in the year, appears to be stabilizing, indicating it may have hit its peak in Q1 2024.
According to WTW, the trend in commercial property pricing has had a ripple effect across the broader commercial insurance market, contributing to the smaller overall rate increase seen in Q2.
The most significant changes were observed in large account commercial property, while pricing in other market segments remained relatively stable.
Beyond commercial property, other lines of insurance, such as workers’ compensation, directors and officers liability, and cyber insurance, continued to show consistent pricing trends. However, some segments, including commercial auto, are still experiencing rising costs due to elevated loss cost trends.
Yi Jing, senior director of insurance consulting and technology at WTW, noted: “The decline in commercial property prices [in the] quarter underscores a notable change in market conditions.
“Although some sectors, such as commercial auto and excess umbrella, continue to face upward pressure, many other lines are demonstrating stability. These results highlight the shifting dynamics within the commercial insurance market.”
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