US commercial insurance rates continue to climb in Q4 2023
US commercial insurance rates continue to climb in Q4 2023 | Insurance Business America
Insurance News
US commercial insurance rates continue to climb in Q4 2023
New report highlights “intriguing shifts” in the sector
Insurance News
By
Mika Pangilinan
Commercial insurance rates in the US have continued to rise through the fourth quarter of 2023, according to a new report by WTW.
Findings from the Commercial Lines Insurance Pricing Survey (CLIPS) conducted by WTW have highlighted a consistent upward movement in premiums, with an aggregate increase of 6.6% in the fourth quarter when compared to the same period in 2022.
Yi Jing, director of Insurance Consulting and Technology (ICT) at WTW, said the ongoing general upward trend seen across most sectors is indicative of “intriguing shifts in commercial insurance rates.”
“Notable increases were observed across various coverage areas, with some at or approaching double-digit growth, while others experienced minor declines,” said Jing. “These findings underscore the dynamic nature of the market and highlight the importance of strategic adaptation while staying agile enough to pivot as the market may require.”
Price changes trend upward in most areas
The most significant price hike was seen in commercial auto, which posted a double-digit increase that was nearly 4% higher than the previous quarter.
Both the package commercial multi-peril/business-owner’s policy (CMP/BOP) and general liability also saw increases that were above previous quarterly rates, while commercial property and excess umbrella coverages have continued to report double-digit growth.
In contrast, workers compensation, directors and officers (D&O) liability, and cyber all experienced minor declines.
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