Commercial premiums, rates begin to stabilize: WTW

Willis Towers Watson PLC Tuesday said commercial insurance premiums and rates have begun to stabilize across most industries and coverage areas in North America in its most recent Marketplace Realities report.

Ample capacity is available across many lines of business, leading to increased competition, stabilized rates and more consistent program structures, Willis said.

“Outside of excess casualty and terrorism, it has become a buyers’ market where clients are driving program improvements through coverage terms, program structure and price,” the report said.

In its key forecast for 2024, Willis had catastrophe-exposed property down 5% to up 10% while noncatastrophe-exposed is seen down 5% to up 5%.

In domestic casualty markets, general liability was up 2% to 8%, while high-hazard umbrella increased 8% to 15%. High-hazard excess casualty is seen up 10% or more, while low-hazard excess casualty is forecast up 2% to 7%.

Workers compensation is forecast down 5% to up 2% and auto is forecast up 4% to 10%.

Directors and officers public company cover and private/not-for-profit are forecast down 10% to flat, the report said. Cyber coverage is seen renewing down 5% to flat.

For political risk, most risks are seen renewing up 10% to 40%.

In terrorism and political violence, terrorism and sabotage is forecast flat to up 10% for nonvolatile territories and up 10% to 25% for volatile territories.

Political violence is seen renewing flat to up 15% for nonvolatile territories and up 15% to 30% for volatile territories.

Jon Drummond, head of broking, North America, WTW, said in the report that “meaningful” capacity was returning to many major product lines.