U.S. commercial insurance rates continued their upward climb in the fourth quarter of 2024, but with indications of a slowdown, according to the latest Commercial Lines Insurance Pricing Survey (CLIPS) from WTW. The survey, which polled 41 insurers, representing approximately 20% of the U.S. commercial insurance market, revealed an aggregate price increase of 5.6% in Q4. This is a decrease from the 6.1% increase reported in the third quarter of 2024.
“The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters,” said Yi Jing, senior director of insurance consulting and technology at WTW. “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.”
Excess and umbrella liability saw its highest price increase in the past three years, while commercial auto experienced its highest price increase ever recorded in the CLIPS survey, continuing to rise in double digits. The commercial property sector experienced the most notable shift in the quarter, with a moderate price increase that was substantially lower than in the previous quarter.
Rate increases for mid-market accounts continued to moderate, a trend that began in the prior quarter. WTW also reported that small accounts experienced lower price increases compared to the previous quarter. The price increases for large accounts remained largely unchanged.
The CLIPS data is derived from new and renewal business figures obtained directly from participating insurance carriers. The survey participants represent a diverse cross-section of U.S. P&C insurers. The data includes many of the top 10 commercial lines companies and the top 25 insurance groups in the country.
