US Property-Casualty Premium Increases Moderated in Q4: WTW CLIPS

US commercial insurance prices continued to increase in the fourth quarter of 2024, though increases showed signs of moderating, according to Willis Towers Watson (WTW).

According to WTW's most recent Commercial Lines Insurance Pricing Survey (CLIPS), US commercial lines insurers reported an aggregate price increase of 5.6 percent during the final 3 months of 2024, down from a 6.1 percent increase reported during the year's third quarter.

WTW's CLIPS survey compares premiums for policies written during the quarter to those for the same coverage during the respective quarter of the prior year, providing a year-over-year view of price changes.

While overall commercial insurance rates showed a moderate slowdown, WTW said several specific lines of coverage showed significant changes. Excess/umbrella liability saw its highest price increase in the past 3 years, while commercial auto posted its largest increase in the entire history of CLIPS, with premium increases continuing in the double digits, WTW said.

Meanwhile, commercial property saw a moderate premium increase that was lower than that for the prior quarter, the CLIPS survey found, while rate increases for middle-market accounts continued to moderate, continuing a trend from 2023's third quarter. Small accounts also saw lower price increases compared to the prior quarter, while price increases for large accounts stayed relatively steady.

"The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters," Yi Ling, senior director, insurance consulting and technology at WTW, said in a statement. "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. These trends underscore key shifts within the commercial insurance landscape."

WTW's CLIPS is a retrospective look at historical changes in commercial property and casualty insurance prices and claims cost inflation.