NEW YORK, March 7, 2024 — The latest results from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) show that U.S. commercial insurance premiums are continuing their upward trend through the fourth quarter of 2023. The quarterly survey results compared premiums for policies written in the fourth quarter of 2023 to premiums for the same period in 2022. Insurers reported that commercial premiums increased by a total of 6.6%, continuing a streak of consecutive quarterly increases of more than 6%.
Commercial auto insurance saw the largest price increases, maintaining its double-digit rate increase, up nearly 4% from the previous quarter. Packaged CMP/BOP and general liability also saw notable growth, exceeding last quarter's rates. Commercial property and excess umbrella continued to show double-digit increases, as in previous years, while cyber and directors and officers liability (D&O) showed negative pricing trends consistent with last quarter's rates.
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As the overall upward trend continues, the latest data for the fourth quarter of 2023 reveals some interesting changes in commercial insurance rates.”
Yi Jing | Director of Insurance Consulting and Technology (ICT), WTW
“Amid a continuing overall upward trend, the latest data for Q4 2023 reveals some interesting changes in commercial insurance rates,” said Yi Jing, director of insurance consulting and technology (ICT) at WTW. “A variety of insurance segments have seen notable increases, with some reaching or approaching double-digit growth rates, while others have experienced slight declines. These findings highlight the dynamic nature of the market and the importance of making strategic adaptations while remaining agile enough to pivot as market demands dictate.”
CLIPS looks back at historical changes in commercial property and casualty (P&C) insurance pricing and claims cost inflation. Forward-looking analysis of commercial P&C trends, outlook and rate forecasts can be found in WTW's Insurance Marketplace Realities series.
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About CLIPS
CLIPS data is based on new and renewal business figures obtained directly from insurers writing business. CLIPS participants represent a cross-section of U.S. P&C insurers, including many of the top 10 U.S. commercial lines companies and the top 25 insurance groups. The study compared prices charged for policies written in the third quarter of 2023 with prices charged for the same coverage in the same quarter in 2022. Forty-three participating insurers (excluding state workers' compensation funds), representing approximately 20% of the U.S. commercial insurance market, provided data for this latest study.