Moderate Rise in U.S. Commercial Insurance Rates
Recent findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) highlight a continued escalation in U.S. commercial insurance rates during the fourth quarter of 2024, albeit at a more tempered pace compared to previous quarters.
According to WTW’s CLIPS, insurance carriers reported a collective price increase of 5.6% during this period, a slight decrease from the 6.1% rate observed in the third quarter of 2024.
Significant Variations in Specific Lines
Despite the overall deceleration, specific coverage lines demonstrated notable changes. Particularly, Excess/Umbrella Liability saw its most substantial price rise in three years, while Commercial Auto marked its highest increase in the entire CLIPS history, continuing its double-digit growth trajectory.
Conversely, Commercial Property experienced a significant shift, with a moderate price increase that was notably lower than in the previous quarter.
Yi Jing, Senior Director of Insurance Consulting and Technology at WTW, remarked, “The data from the fourth quarter indicates a sustained upward trend in overall pricing, albeit with signs of moderation when compared to earlier quarters.
Lines such as Commercial Auto and Excess/Umbrella Liability remain on a notable upward trajectory, whereas the Commercial Property sector saw a marked slowdown in pricing adjustments. These trends highlight significant shifts within the commercial insurance landscape.”
