U.S. commercial insurance rates continued to rise, but the pace of increases showed signs of slowing down in the fourth quarter of 2024. This information comes from WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS), which provides insights into the insurance market.
In the fourth quarter, carriers reported an average price increase of 5.6%. This is a slight decrease from the 6.1% increase seen in the third quarter. WTW noted that different types of coverage experienced varying changes in pricing.
According to Yi Jing, a senior director at WTW, the data indicates that while prices are still increasing, the rate of growth is moderating compared to earlier in the year. For instance, commercial auto and excess/umbrella liability insurance saw significant price hikes. In fact, commercial auto insurance recorded its highest price increase ever in the survey’s history. Meanwhile, the commercial property market showed a notable slowdown in price adjustments.
The survey included responses from 41 insurers, which represent about 20% of the U.S. commercial insurance market, excluding state workers compensation funds. This broad participation helps provide a clearer picture of the market trends.
Excess and umbrella liability insurance also saw its largest price increase in three years. On the other hand, the commercial property sector experienced a moderate price increase, much lower than in previous quarters. Additionally, while mid-market accounts saw price increases continue to ease, small accounts experienced lower increases as well. Prices for large accounts remained stable.
The CLIPS data is based on new and renewal business figures gathered directly from the insurers. The survey includes many of the top commercial lines companies and insurance groups in the U.S., making it a valuable resource for understanding current pricing trends.
Overall, the findings highlight key shifts in the commercial insurance landscape, suggesting that while prices are still on the rise, the rate of increase is starting to level off.