U.S. commercial insurance rates have continued their upward trajectory through the fourth quarter of 2023, according to the latest findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). The quarterly survey results compared insurance premiums for policies underwritten during the fourth quarter of 2023 with those from the corresponding period in 2022. Carriers reported an aggregate commercial price increase of 6.7%, continuing a consecutive quarter upsurge over 6%.
The strongest price increase was Commercial Auto, sustaining a double-digit uptick and rising by nearly four percent from the previous quarter. Package CMP/BOP (Commercial Multi-Peril / Business-Owner’s Policy) and General Liability also demonstrated prominent growth, surpassing previous quarterly rates. Commercial Property and Excess Umbrella coverages continued to exhibit double-digit increases, as observed previously, while Cyber and Directors and Officers Liability (D&O) displayed negative pricing trends, which were consistent with the rates in prior quarters.
Amidst the ongoing general upward trend, our latest data from the fourth quarter of 2023 reveals intriguing shifts in commercial insurance rates,” said Yi Jing, Director, Insurance Consulting and Technology (ICT), WTW. “Notable increases were observed across various coverage areas, with some at or approaching double-digit growth, while others experienced minor declines. These findings underscore the dynamic nature of the market and highlight the importance of strategic adaptation while staying agile enough to pivot as the market may require.”
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.