U.S. commercial insurance prices showed an aggregate increase just under 6%

U.S. commercial insurance prices grew again in the second quarter of 2024, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the second quarter of 2024 with those charged for the same coverage during the same quarter in 2023. The aggregate commercial price change reported by carriers spiked upward to nearly and above 10% in the second through fourth quarters of 2020. Since then, it started to decline and decreased to just below 5% in the fourth quarter of 2022 but increased back to above 5% in the first quarter of 2023. In both the fourth quarter of 2023 and the first quarter of 2024, it was above 6% and now it is just below 6% in the second quarter of 2024.

Line-of-business

Data for nearly all lines continue to indicate moderate to significant price increases in the second quarter with the exception of workers compensation, directors' and officers' liability, and cyber. CLIPS continues to indicate a slight price reduction for workers compensation. Directors' and officers' liability saw another quarter of price decrease but, again, less than the prior quarter. The largest price increases came from excess/umbrella liability and commercial auto, both of which saw a reported price increase above double digits. The segment with the largest change compared to prior quarter was commercial property. Commercial property continued to see a price increase although it was much lower than the prior quarter. Cyber reported significant rate increases in 2021 through the third quarter of 2022. From the first quarter of 2023, cyber started to show significant rate decreases, which continued through the second quarter of 2024 similar to the prior quarter.

Account size price changes

When comparing account sizes, reported price increases for mid-market and large accounts were slightly lower than prior quarter. Small accounts had a slightly higher price increase than prior quarter. Specialty lines had a small rate decrease.