Broker WTW said commercial lines insurance rates increased overall by an average of 5.9% during the second quarter.
Quarterly price increases have been around 6% since the end of the global pandemic, WTW reported in its Commercial Lines Insurance Pricing Survey (CLIPS). Survey results showed rates went up 6.3% in the first three months of 2024. Rates were up 6.1% in the second quarter a year ago. From the middle to end of 2020, commercial rate increases were just below or hovered above 10%.
The most change in Q2 2024, according to WTW’s survey, was a “significant reduction” in commercial property insurance rates, suggesting the line has “reached its peak and is beginning to stabilize.”
“The decline in commercial property prices this quarter underscores a notable change in market conditions.” said Yi Jing, senior director, Insurance Consulting and Technology (ICT) at WTW, in a statement. “Although some sectors, such as commercial auto and excess umbrella, continue to face upward pressure, many other lines are demonstrating stability. These results highlight the shifting dynamics within the commercial insurance market.”
WTW said directors and officers liability saw another quarter of price decrease but, again, less than the prior quarter. Excess/umbrella liability and commercial auto both saw price increases above double digits, according to respondents.
Starting early last year, cyber started to show rate decreases, which have continued in Q2 2024.
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