US commercial insurance composite rates up 3.75% in 2024: MarketScout

The US commercial insurance sector saw a composite rate increase of 2.64% in Q4 2024, bringing the total increase for the year to 3.75%, down from 4.56% in 2023, according to a recent analysis by MarketScout.

Richard Kerr, CEO of Novatae, observed that property rates are slowing due to fewer insured catastrophic events and increased capacity.

Umbrella/Excess Liability and Automobile rates continue to rise, while Professional Liability rates are stabilising.

Kerr also pointed out that commercial insurance rates have been unpredictable since 2001. “While recent years have seen steady increases, intermediaries must prepare for an eventual market shift,” he said. “The past seven years of rate increases have positively impacted intermediary earnings due to percentage-based compensation.”

US composite personal lines insurance rates also rose, increasing by 4% in Q4 2024 and 5.79% for the full year, marking the highest annual rise in 12 years.

Kerr noted that Hurricanes Helene and Milton caused less damage than expected, leading to a slight reduction in homeowners’ pricing in Q4. However, significant uninsured flood losses left many homeowners at risk.

“The Q4 rate moderation is a welcome shift, but 2024 still marked a composite rate increase at 5.79%. We’ll monitor how this evolves in 2025,” he concluded.

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