Commercial Lines Insurance Pricing Survey 2023 Q4
NEW YORK, March 7, 2024 — U.S. commercial insurance rates have continued their upward trajectory through the fourth quarter of 2023, according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The quarterly survey results compared insurance premiums for policies underwritten during the fourth quarter of 2023 with those from the corresponding period in 2022. Carriers reported an aggregate commercial price increase of 6.6%, continuing a consecutive quarter upsurge over 6%.
The strongest price increase was Commercial Auto, sustaining a double-digit uptick and rising by nearly four percent from the previous quarter. Package CMP/BOP (Commercial Multi-Peril / Business-Owner’s Policy) and General Liability also demonstrated prominent growth, surpassing previous quarterly rates. Commercial Property and Excess Umbrella coverages continued to exhibit double-digit increases, as observed previously, while Cyber and Directors and Officers Liability (D&O) displayed negative pricing trends, which were consistent with the rates in prior quarters.
“Amidst the ongoing general upward trend, our latest data from the fourth quarter of 2023 reveals intriguing shifts in commercial insurance rates.”
Yi Jing | Director, Insurance Consulting and Technology (ICT), WTW
"Amidst the ongoing general upward trend, our latest data from the fourth quarter of 2023 reveals intriguing shifts in commercial insurance rates," said Yi Jing, Director, Insurance Consulting and Technology (ICT), WTW. "Notable increases were observed across various coverage areas, with some at or approaching double-digit growth, while others experienced minor declines. These findings underscore the dynamic nature of the market and highlight the importance of strategic adaptation while staying agile enough to pivot as the market may require."
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 can be found in WTW’s Insurance Marketplace Realities series.
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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 2023 with the prices charged for the same coverage during the same quarter of 2022. 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.
