US commercial insurance rates sustained upward trajectory in Q4’23: WTW

Global insurance brokerage WTW has disclosed that U.S. commercial insurance rates have sustained an upward trajectory exceeding 6% in Q4 2023.

According to the Commercial Lines Insurance Pricing Survey (CLIPS) conducted by WTW’s Insurance Consulting and Technology (ICT) business, in the fourth quarter of 2023, the insurance premiums for policies underwritten during the period when compared year-over-year, carriers reported an aggregate commercial price increase of 6.7%, continuing a consecutive quarter upsurge over 6%.

CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation.

According to the survey, the strongest price increase was Commercial Auto, which sustained a double-digit uptick and rose by nearly 4% from the previous quarter. Package Commercial Multi-Peril/Business-Owner’s Policy (CMP/BOP) and General Liability also demonstrated prominent growth, surpassing previous quarterly rates.

Commercial Property and Excess Umbrella coverages also continued to exhibit double-digit increases. However, Cyber and Directors and Officers Liability (D&O) displayed negative pricing trends, which were consistent with the rates in prior quarters.

Yi Jing, Director, Insurance Consulting and Technology (ICT), WTW, commented, “Amidst the ongoing general upward trend, our latest data from the fourth quarter of 2023 reveals intriguing shifts in commercial insurance rates.

“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.”

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