Global re/insurance broker WTW’s latest Commercial Lines Insurance Pricing Survey (CLIPS), US commercial insurance rates climbed by 6.1% during the third quarter of 2024.
Based on the firm’s CLIPS for Q3’24, the collective commercial price change reported by insurance carriers reflects a modest rise compared to 5.9% in Q2 2024 (6.1% in Q3 2023).
For those unaware, CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation.
It’s worth noting, that the survey compares commercial insurance prices on policies underwritten during the third quarter of 2024 to those for the same coverage in the respective quarter of 2023 for a year-over-year perspective.
Moreover, WTW affirms that package Commercial Multi-Peril (CMP) and Businessowners Policies (BOP) reached their highest levels in over a decade during the quarter.
The broker also notes, that while both small and large accounts experienced price hikes, mid-sized accounts showed slight moderation.
Commercial Property pricing stabilised after a period of sharp increases, which according to WTW, reflects broader market adjustments.
On the other hand, workers’ compensation, commercial auto and excess/umbrella liability reportedly showed consistent trends from the prior quarter, which clearly demonstrates a market with varying dynamics across lines and account sizes.
Yi Jing, Senior Director, Insurance Consulting and Technology at WTW, commented: “Results for this quarter reflect continued shifts in the commercial insurance landscape.
“Sectors like Commercial Auto and Excess/Umbrella liability continue to face pricing pressures, while others, such as Commercial Property, are stabilizing. These developments highlight a market in transition, as insurers adapt to evolving risks and economic conditions.”
