US Commercial Lines Prices Up 5.6% With Signs of Moderation: WTW CLIPS

U.S. commercial insurance rates showed a continued upward trend with signs of moderation in the fourth quarter of 2024, according to the latest findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS).

Carriers reported an aggregate price increase of 5.6% in the fourth quarter — down from the 6.1% rate recorded in the third quarter of 2024. WTW said in a press release that specific coverage lines experienced “significant changes.”

“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.”

Forty-one insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) participated in the survey.

Excess and umbrella liability recorded its highest price increase in the past three years, while commercial auto recorded its highest price increase in CLIPS history and continued to rise in double digits. The press release said that commercial property experienced “the most notable shift this quarter” with a moderate price increase that was significantly lower than the prior quarter.

Rate increases for mid-market accounts continued to moderate; this extended the trend from the previous quarter. WTW reported that small accounts also saw lower price increases compared to the prior quarter. Price increases for large accounts remained virtually unchanged.

CLIPS data is based on new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross-section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S.

Topics
USA
Trends
Commercial Lines
Business Insurance
Pricing Trends

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