U.S. Commercial Insurance Rates Show Signs of Moderation in Q4 2024, WTW Survey Finds
According to the latest Commercial Lines Insurance Pricing Survey (CLIPS) from WTW, U.S. commercial insurance rates continued their upward trajectory into the fourth quarter of 2024. However, there are indications that the rate of increase might be easing.
Carriers reported a 5.6% aggregate price increase in Q4, a slight dip from the 6.1% recorded in Q3 2024. WTW noted specific coverage lines experienced “significant changes.” Yi Jing, senior director of insurance consulting and technology at WTW, commented, “The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters.”
Jing added, “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.”
Forty-one insurers, representing roughly 20% of the U.S. commercial insurance market (excluding state workers’ compensation funds), participated in the survey. The data revealed that excess and umbrella liability saw its highest price increase in the past three years, while commercial auto reached its highest point in CLIPS history, with double-digit increases continuing.
The press release also highlighted a significant shift in commercial property, noting “the most notable shift this quarter” with a more moderate price uptick compared to the previous quarter. The trend of moderating rate increases in mid-market accounts also persisted from the prior quarter. Furthermore, WTW indicated that smaller accounts experienced lower price increases as well. The survey indicated that price increases for large accounts remained largely unchanged.
The CLIPS data is drawn from new and renewal business figures obtained directly from carriers that underwrite the business. The participating carriers comprise a broad cross-section of U.S. property and casualty insurers, including many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S.
