Commercial lines insurance pricing survey 2024 Q2
NEW YORK, September 10, 2024 – According to WTW, a leading global advisory, broking, and solutions company, U.S. commercial insurance rates grew at a rate of 5.9% throughout the second quarter of 2024. Based on the company’s Commercial Lines Insurance Pricing Survey (CLIPS) for Q2 2024, the collective commercial price change reported by insurance carriers in the quarterly survey showed an increase of 5.9%, down from 6.3% in Q1 2024 (6.1% in Q2 2023). The survey compares commercial insurance prices on policies underwritten during the second quarter of 2024 to those for the same coverage in the same respective quarter of 2023 for a year-over-year perspective.
The overall decline in commercial insurance price increase for the quarter was largely attributable to a significant reduction in price increase from the prior quarter in Commercial Property. Growth in Commercial Property prices has markedly slowed compared to Q1 2024, suggesting that the sector has reached its peak and is beginning to stabilize. This decline in Commercial Property pricing has significantly influenced the current market trend, leading to a slower rate of increase across the broader commercial insurance market, when compared to the first quarter of the year. Notable adjustments in Commercial Property pricing are particularly evident in the Large Account Commercial segment, while other market segments have remained relatively stable overall.
Additionally, other commercial lines, including Workers' Compensation (WC), Directors and Officers (D&O), and Cyber insurance, continued to exhibit consistent pricing patterns as observed in prior quarters. Conversely, Commercial Auto and Excess Umbrella lines are facing sustained upward pressure due to high loss cost trends.
“The decline in Commercial Property prices this quarter underscores a notable change in market conditions.”
Yi Jing | Senior Director, Insurance Consulting and Technology (ICT) at WTW
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, “The decline in Commercial Property prices this quarter underscores a notable change in market conditions. Although some sectors, such as Commercial Auto and Excess Umbrella, continue to face upward pressure, many other lines are demonstrating stability. These results highlight the shifting dynamics within the commercial insurance market.”
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 per year, 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 second 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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