WTW CLIPS: US commercial rate increases moderate to 5.6% in Q4

By Michael Loney

March 10 - (The Insurer) - U.S. commercial insurance rate increases moderated to 5.6% in the fourth quarter of 2024 despite excess/umbrella and commercial auto increases accelerating, according to WTW's Commercial Lines Insurance Pricing Survey.

The aggregate price increase in the fourth quarter was down from 6.1% in the third quarter of 2024.

The survey compared premiums for policies underwritten during the fourth quarter of 2024 to those for the same coverage in the same quarter of 2023.

WTW said that excess/umbrella liability in Q4 recorded its highest price increase in the past three years while commercial auto recorded its highest price increase in the entire history of CLIPS, continuing to rise in double digits.

Commercial property recorded a “moderate” price increase that was significantly lower than in the prior quarter, WTW said.

Rate increases for mid-market accounts continued to moderate, which extended the trend from the previous quarter. Small accounts also saw lower price increases compared to the prior quarter, while price increases for large accounts remained virtually unchanged.

"The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters,” said Yi Jing, senior director, insurance consulting and technology at WTW.

“Lines such as commercial auto and excess/umbrella liability continue to see notable price increases, while the commercial property market experienced a significant slowdown in pricing adjustments,” Jing added.

The feedback from WTW follows the latest quarterly P&C market survey from the Council of Insurance Agents & Brokers last month, which showed that U.S. commercial insurance premium across all account sizes increased by 5.4% on average in the fourth quarter, up from 5.1% in Q3 2024.

The CIAB survey also recorded commercial auto and umbrella seeing the biggest average increases at 8.9% and 8.7%, respectively.