U.S. Commercial Insurance Prices Climb 5.9% in Second Quarter of 2024

U.S. commercial insurance prices saw a moderate 5.9% increase in the second quarter of 2024, according to WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares current policy pricing with the same quarter of the previous year and highlights fluctuating trends in the market. After a peak increase of around 10% in late 2020, the growth rate tapered off but remained above 6% since late 2023.

Despite the overall rise in prices, certain lines, including workers’ compensation, directors’ and officers’ liability (D&O), and cyber insurance, experienced slight reductions in rates. Meanwhile, the most significant increases were seen in excess/umbrella liability and commercial auto insurance, both of which saw double-digit percentage hikes. Commercial property insurance rates also rose but at a slower pace compared to prior quarters.

The CLIPS data further reveals a nuanced market, with price increases for mid-market and large accounts slightly lower than in Q1 2024, while small accounts faced slightly higher price hikes. Specialty lines experienced a minor rate decrease, continuing a trend of pricing volatility across various sectors.