Commercial Lines Insurance Pricing Survey: Q3 2024
NEW YORK, December 11, 2024 – WTW, a leading global advisory, broking, and solutions company, reported that U.S. commercial insurance rates increased by 6.1% during the third quarter of 2024. Based on the company’s Commercial Lines Insurance Pricing Survey (CLIPS) for Q3 2024, the collective commercial price change reported by insurance carriers reflects a modest rise compared to 5.9% in Q2 2024 (6.1% in Q3 2023). The survey compares commercial insurance prices on policies underwritten during the third quarter of 2024 to those for the same coverage in the respective quarter of 2023 for a year-over-year perspective.
Package Commercial Multi-Peril (CMP) and Businessowners Policies (BOP) reached their highest levels in over a decade. While small and large accounts experienced price hikes, mid-sized accounts showed slight moderation. Commercial Property pricing stabilized after a period of sharp increases, reflecting broader market adjustments. Workers' compensation, commercial auto and excess/umbrella liability showed consistent trends from the prior quarter, indicating a market with varying dynamics across lines and account sizes.
“Results for this quarter reflect continued shifts in the commercial insurance landscape.”
Yi Jing | Senior Director, Insurance Consulting and Technology at WTW
“Results for this quarter reflect continued shifts in the commercial insurance landscape,” said Yi Jing, Senior Director, Insurance Consulting and Technology at WTW. “Sectors like Commercial Auto and Excess/Umbrella liability continue to face pricing pressures, while others, such as Commercial Property, are stabilizing. These developments highlight a market in transition, as insurers adapt to evolving risks and economic conditions.”
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of commercial P&C trends, outlook, and rate predictions for the upcoming quarter can be found in WTW’s Insurance Marketplace Realities series (published twice yearly, every spring and fall).
CLIPS data are based on both 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. This survey compared prices charged on policies written during the third quarter of 2024 with the prices charged for the same coverage during the same quarter of 2023. For this most recent survey, 43 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
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