U.S. Commercial Insurance Rates Continue to Rise, Though Moderation Observed in Q4 2024
NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) — U.S. commercial insurance rates continued their upward trajectory in the fourth quarter of 2024, according to the latest findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey, which compares premiums for policies underwritten in Q4 2024 to those in Q4 2023, provides a year-over-year perspective on the commercial insurance landscape.
Carriers reported an aggregate price increase of 5.6% in Q4 2024, a decrease from the 6.1% increase recorded in Q3 of the same year. While overall rate increases showed a moderate slowdown, significant shifts were observed across specific coverage lines.
Key findings from the CLIPS survey include:
- Excess/Umbrella Liability experienced its highest price increase in the past three years.
- Commercial Auto saw its highest price increase in CLIPS history, maintaining double-digit growth.
- Commercial Property experienced a notable slowdown, showing moderate price increases compared to the previous quarter.
- Mid-market and small accounts demonstrated moderating price increases, while pricing for large accounts remained relatively stable.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented on the findings, stating, “The fourth-quarter data shows a continued upward trend in overall pricing, but with signs of moderation compared to prior quarters. Lines such as Commercial Auto and Excess/Umbrella Liability continue to see notable price increases, whereas the Commercial Property market has experienced a significant slowdown in pricing adjustments. These trends highlight key shifts within the commercial insurance landscape.”
CLIPS provides a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claim cost inflation. WTW also offers a forward-looking analysis of Commercial P&C trends and rate predictions via its Insurance Marketplace Realities series.
About WTW
At WTW (NASDAQ: WTW), they deliver data-driven and insight-led solutions in the areas of people, risk, and capital. Leveraging global and local expertise in 140 countries and markets, they help organizations sharpen strategy, enhance organizational resilience, motivate their workforce, and maximize performance, offering perspective that moves you.
About Insurance Consulting & Technology (ICT)
WTW’s Insurance Consulting & Technology business serves the insurance industry with a powerful combination of advisory services and leading-edge technology. Their mission is to innovate and transform insurance, with solutions that help clients better select, finance, and manage risk and capital. They serve a global clientele with over 1,000 client companies using their specialist insurance software on six continents, with over 1,700 colleagues in 35 markets.
About CLIPS
CLIPS data is based on data obtained directly from carriers underwriting the business. Participants represent a cross-section of U.S. P&C insurers, including firms in the top 25 insurance groups in the U.S. For the most recent survey, 41 participating insurers, which comprise roughly 20% of the US commercial insurance market (excluding state worker’s compensation funds) contributed data.
