US commercial insurance rates continued to rise in the fourth quarter of 2024, though at a slower pace compared to previous quarters, according to WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS).
The survey, which measures year-over-year changes in policy premiums, found that carriers reported an aggregate price increase of 5.6% in Q4, down from the 6.1% increase recorded in Q3.
While the overall rate of increase moderated, certain coverage lines saw notable shifts. Excess/umbrella liability recorded its highest price increase in three years, while commercial auto experienced its largest price jump since CLIPS began tracking data.
Commercial property saw a more moderate price increase in Q4, with rates rising at a significantly lower level than in prior quarters.
Pricing trends varied across different account sizes. Mid-market accounts continued to see a slowdown in rate increases, extending the trend from the previous quarter. Small accounts also recorded lower price increases compared to Q3, while rates for large accounts remained relatively stable.
Yi Jing (pictured above), senior director of Insurance Consulting and Technology (ICT) at WTW, said the data reflects ongoing price increases, though at a moderated pace compared to earlier in the year.
He noted that while commercial auto and excess/umbrella liability continue to see significant rate hikes, the commercial property sector showed a slowdown in pricing adjustments.
On the global side, a separate index from Marsh highlighted that commercial insurance rates fell by 2% in the fourth quarter of 2024, marking the second consecutive quarterly decline after seven years of rate increases. This decrease follows a 1% drop in Q3 2024 and reflects continued moderation in pricing trends across multiple lines of business.
Regional trends varied, with the Pacific region experiencing the largest year-on-year composite rate decrease of 8% in Q4. The UK saw a 5% decline, while rates in Asia fell by 3%, and both Europe and Canada recorded a 2% decrease.
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