Insurance rate outlook stable in most lines: WTW
- July 28, 2025
- Posted by: Web workers
- Category: Finance
North American commercial insurance buyers may see property rates soften further in late 2024, while the high-rate environment in liability lines is expected to persist, according to a report issued Wednesday by Willis Towers Watson PLC.
Rates continue to moderate across most lines of business, but the more stable market outlook could be upended by a major storm such as Hurricane Milton, which was bearing down on Florida late Wednesday, WTW said.
In property, increased insurer competition, favorable reinsurance renewals and a weaker-than-predicted Atlantic hurricane season to date have led to continued stability through the second quarter of 2024, the report said.
WTW forecasts property rates for challenged occupancies or catastrophe-exposed risks will range from 10% decreases to 10% increases, while rates for noncatastrophe exposed risks will range from down 5% to up 5%.
In casualty, insurers saw underwriting profits in late 2023 and into the first quarter of 2024, driven by personal lines, exposure growth and new business, WTW said.
However, rate pressure is climbing due to the rising frequency and severity of jury verdicts, especially in auto and products liability, and concerns over so-called forever chemicals.
Buyers should expect general liability rate increases in the 2% to 8% range, while increases for high-hazard umbrella coverage will be in the 10% to 20% range, and high-hazard excess casualty will increase by 20% or more.
Workers compensation rates are forecast to range from down 5% to up 2%.
Cyber and financial lines also remain relatively soft, as capital and capacity remain abundant, WTW said. Rates for cyber risks will continue to range from 5% decreases to flat.
Public company primary, excess and side A directors and officers liability rates are expected to range from 5% decreases to flat. In comparison, private/not-for-profit D&O rates will range from down 10% to flat. Rate adequacy in mid-excess D&O liability is coming under increased focus, the report said.
