Moderate Rise in U.S. Commercial Insurance Rates
WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) has revealed that U.S. commercial insurance rates continued to rise in the fourth quarter of 2024, albeit at a more moderate pace.
As per WTW’s CLIPS, carriers reported an aggregate price increase of 5.6% in the fourth quarter of 2024, down from the rate of 6.1% recorded in the third quarter of 2024.
Significant Changes in Specific Coverage Lines
Notably, Excess/Umbrella Liability recorded its highest price increase in the past three years, while Commercial Auto recorded its highest price increase in the entire history of CLIPS, continuing to rise in double digits.
Meanwhile, Commercial Property experienced the most notable shift in the fourth quarter of 2024, with a moderate price increase that was significantly lower than in the third quarter.
Expert Insights
Yi Jing, Senior Director, 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.”
“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.”
