WTW Willis Towers Watson Public Ltd Company

U.S. commercial insurance rates showed a continued upward trend with signs of moderation in the fourth quarter of 2024, according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten during the fourth quarter of 2024 to those for the same coverage in the respective quarter of 2023, providing a year-over-year perspective. Carriers reported an aggregate price increase of 5.6% in the fourth quarter, down from the rate of 6.1% recorded in the third quarter of 2024.

While overall rates showed a moderate slowdown, significant changes were observed in specific coverage lines. Excess/Umbrella Liability 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 experienced the most notable shift this quarter, though a moderate price increase, significantly lower than prior quarter. Rate increases for mid-market accounts continued to moderate, extending 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.

Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, "The fourth-quarter data shows a continued upward trend in overall pricing, with signs of moderation compared to prior quarters. 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."

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 can be found in WTW’s Insurance Marketplace Realities series. 

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

About Insurance Consulting & Technology (ICT)

WTW’s Insurance Consulting & Technology business serves the insurance industry with a powerful combination of advisory services and leading-edge technology. Our mission is to innovate and transform insurance, and we deliver solutions that help clients better select, finance, and manage risk and capital.

We work with clients of all sizes globally, including most of the world’s leading insurance groups. Over 1,000 client companies use our specialist insurance software on six continents. With over 1,700 colleagues in 35 markets, we continually strive to be a partner and employer of choice to the insurance industry.

About CLIPS

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 fourth quarter of 2024 with the prices charged for the same coverage during the same quarter of 2023. For this most recent survey, 41 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.

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