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

U.S. commercial insurance prices grew again in the third 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 third 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 to above 6% in the second quarter of 2023. Over the last five quarters, the price increase has been just slightly above or below 6%.

Line-of-business

Data for nearly all lines continue to indicate moderate to significant price increases in the third quarter with the exception of workers compensation, directors' and officers' liability, cyber, and surety bonds. CLIPS continues to indicate a slight price reduction for workers compensation. Directors' and officers' liability price in the third quarter decreased more than the first and the second quarter. The largest price increases continue to come from excess/umbrella liability and commercial auto liability, both of which retained a double digit reported price increase. After having significant price increases during 2023, commercial property continued to see a price increase but at a level much lower than 2023. 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 third quarter of 2024.

Account size price changes

When comparing account sizes, reported price increases for small and large accounts were slightly higher than prior quarter. Mid-market accounts had a slightly lower price increase than prior quarter. Specialty lines had a small rate decrease as a result of the continuing price decrease seen in directors’ and officers’ liability.