U.S. commercial insurance rates show an aggregate increase near 6%
WTW's Commercial Lines Insurance Pricing Survey (CLIPS) for Q2 2024 reveals U.S. commercial insurance rates increased by 5.9%, down from 6.3% in Q1 2024 and 6.1% in Q2 2023. The slowdown is primarily due to a significant reduction in Commercial Property price increases, suggesting market stabilization in this sector. Large Account Commercial segment saw notable adjustments, while other market segments remained relatively stable.
Workers' Compensation, Directors and Officers, and Cyber insurance maintained consistent pricing patterns. However, Commercial Auto and Excess Umbrella lines continue to face upward pressure due to high loss cost trends. Yi Jing, Senior Director at WTW, noted that these results highlight the shifting dynamics within the commercial insurance market.
Il sondaggio di WTW sui prezzi delle assicurazioni per le linee commerciali (CLIPS) per il secondo trimestre del 2024 rivela che le tariffe delle assicurazioni commerciali negli Stati Uniti sono aumentate del 5,9%, in calo rispetto al 6,3% nel primo trimestre del 2024 e al 6,1% nel secondo trimestre del 2023. Questa diminuzione è principalmente dovuta a una riduzione significativa degli aumenti nei prezzi delle proprietà commerciali, suggerendo una stabilizzazione del mercato in questo settore. Il segmento commerciale dei grandi conti ha visto aggiustamenti notevoli, mentre altri segmenti di mercato sono rimasti relativamente stabili.
Compensazione dei lavoratori, responsabilità dei direttori e funzionari, e assicurazioni cyber hanno mantenuto schemi di prezzo coerenti. Tuttavia, le linee Commercial Auto e Excess Umbrella continuano a subire pressioni al rialzo a causa delle elevate tendenze sui costi delle perdite. Yi Jing, Direttore Senior di WTW, ha osservato che questi risultati evidenziano le dinamiche in evoluzione all'interno del mercato delle assicurazioni commerciali.
La encuesta de WTW sobre precios de seguros para líneas comerciales (CLIPS) del segundo trimestre de 2024 revela que las tarifas de seguros comerciales en EE. UU. aumentaron un 5,9%, por debajo del 6,3% en el primer trimestre de 2024 y el 6,1% en el segundo trimestre de 2023. Esta desaceleración se debe principalmente a una reducción significativa en los aumentos de precios de las propiedades comerciales, lo que sugiere una estabilización del mercado en este sector. El segmento comercial de grandes cuentas vio ajustes notables, mientras que otros segmentos del mercado se mantuvieron relativamente estables.
La compensación de trabajadores, la responsabilidad de directores y funcionarios, y el seguro cibernético mantuvieron patrones de precios consistentes. Sin embargo, las líneas de automóviles comerciales y excedentes de paraguas siguen enfrentando presión al alza debido a las altas tendencias en costos de pérdidas. Yi Jing, Director Senior en WTW, comentó que estos resultados destacan la dinámica cambiante dentro del mercado de seguros comerciales.
WTW의 상업용 보험 가격 조사(CLIPS) 2024년 2분기 보고서에 따르면 미국의 상업용 보험료가 5.9% 증가했습니다. 이는 2024년 1분기 6.3%와 2023년 2분기 6.1%에서 감소한 수치입니다. 이러한 둔화는 상업용 재산 가격 상승 폭이 유의미하게 줄어들었기 때문이어서, 이 분야의 시장 안정화를 시사합니다. 대형 계정 상업 부문에서는 두드러진 조정이 있었지만, 다른 시장 부문은 상대적으로 안정세를 유지했습니다.
근로자 보상, 이사 및 임원 책임, 사이버 보험은 일관된 가격 패턴을 유지했습니다. 그러나 상업용 자동차 및 초과 우산 보험 부문은 여전히 상승 압박에 직면해 있습니다 잦은 손실 비용 트렌드로 인해서요. WTW의 수석 이사인 이징은 이러한 결과가 상업 보험 시장의 변화하는 역학을 강조한다고 언급했습니다.
Le sondage de WTW sur les tarifs des assurances commerciales (CLIPS) pour le deuxième trimestre 2024 révèle que les tarifs d'assurances commerciales aux États-Unis ont augmenté de 5,9%, en baisse par rapport à 6,3% au premier trimestre 2024 et 6,1% au deuxième trimestre 2023. Ce ralentissement est principalement dû à une réduction significative des augmentations de prix dans le domaine de l'immobilier commercial, suggérant une stabilisation du marché dans ce secteur. Le segment des grands comptes commerciaux a connu des ajustements notables, tandis que d'autres segments de marché sont restés relativement stables.
Les assurances accidents du travail, la responsabilité des dirigeants et des administrateurs, et l'assurance cybernétique ont maintenu des schémas de prix cohérents. Cependant, les lignes d'assurance automobile commerciale et de surplus continuent d'être sous pression à la hausse en raison de tendances élevées des coûts des pertes. Yi Jing, Directeur Senior chez WTW, a souligné que ces résultats mettent en évidence les dynamiques changeantes du marché des assurances commerciales.
Die Preisanalyse für gewerbliche Versicherungen (CLIPS) von WTW für das zweite Quartal 2024 zeigt, dass die gewerblichen Versicherungsprämien in den USA um 5,9% gestiegen sind, im Vergleich zu 6,3% im ersten Quartal 2024 und 6,1% im zweiten Quartal 2023. Diese Verlangsamung ist hauptsächlich auf eine deutliche Reduktion der Preiserhöhungen für gewerbliche Immobilien zurückzuführen, was auf eine Stabilisierung des Marktes in diesem Sektor hindeutet. Der Bereich der großen Unternehmenskunden verzeichnete signifikante Anpassungen, während andere Marktsegmente relativ stabil blieben.
Die Preise für die Arbeitnehmerentschädigung, die Haftpflichtversicherung für Geschäftsführer und obere Führungskräfte sowie die Cyber-Versicherung blieben konstant. Allerdings stehen die gewerbliche Auto- und die Überschussversicherung weiterhin unter Aufwärtsdruck aufgrund hoher Verlustkosten-Trends. Yi Jing, Senior Director bei WTW, bemerkte, dass diese Ergebnisse die sich ändernden Dynamiken im gewerblichen Versicherungsmarkt hervorheben.
- Overall commercial insurance rates increased by 5.9% in Q2 2024
- Commercial Property price increases have slowed, indicating market stabilization
- Workers' Compensation, Directors and Officers, and Cyber insurance pricing remained stable
- Commercial insurance rate increase slowed compared to previous quarter (6.3% in Q1 2024)
- Commercial Auto and Excess Umbrella lines face sustained upward pressure due to high loss cost trends
Insights
The 5.9% increase in U.S. commercial insurance rates for Q2 2024 signals a cooling trend in the market, down from 6.3% in Q1. This deceleration is primarily driven by a significant slowdown in Commercial Property price increases, suggesting a market stabilization in this sector. The
Investors should note the diverging trends across different insurance lines. While Commercial Property is cooling, Commercial Auto and Excess Umbrella lines continue to face upward pressure due to high loss cost trends. This mixed picture indicates a complex market environment that requires careful navigation for insurers and investors alike.
The consistent pricing patterns in Workers' Compensation, D&O and Cyber insurance suggest these sectors have found a pricing equilibrium, which could provide stability for insurers focused on these lines. Overall, this report indicates a maturing market cycle, with potential implications for insurers' profitability and pricing strategies in the coming quarters.
The deceleration in commercial insurance rate increases to
The stabilization in Commercial Property pricing, particularly in the Large Account segment, may lead to increased competition among insurers. This could pressure top-line growth for companies heavily exposed to this sector. Conversely, the sustained upward pressure in Commercial Auto and Excess Umbrella lines presents opportunities for premium growth and potential margin expansion for insurers with strong positions in these segments.
Investors should monitor how individual insurers navigate this shifting landscape, as their product mix and pricing strategies will be important in maintaining profitability. The overall market trend suggests a need for insurers to focus on operational efficiency and risk selection to offset the potential impact of slowing rate increases on their financial performance.
Commercial Lines Insurance Pricing Survey: Q2 2024
NEW YORK, Sept. 10, 2024 (GLOBE NEWSWIRE) -- According to WTW, a leading global advisory, broking, and solutions company, U.S. commercial insurance rates grew at a rate of
The overall decline in commercial insurance price increase for the quarter was largely attributable to a significant reduction in price increase from the prior quarter in Commercial Property. Growth in Commercial Property prices has markedly slowed compared to Q1 2024, suggesting that the sector has reached its peak and is beginning to stabilize. This decline in Commercial Property pricing has significantly influenced the current market trend, leading to a slower rate of increase across the broader commercial insurance market, when compared to the first quarter of the year. Notable adjustments in Commercial Property pricing are particularly evident in the Large Account Commercial segment, while other market segments have remained relatively stable overall.
Additionally, other commercial lines, including Workers' Compensation (WC), Directors and Officers (D&O), and Cyber insurance, continued to exhibit consistent pricing patterns as observed in prior quarters. Conversely, Commercial Auto and Excess Umbrella lines are facing sustained upward pressure due to high loss cost trends.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, “The decline in Commercial Property prices this quarter underscores a notable change in market conditions. 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.”
CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of commercial P&C trends, outlook, and rate predictions for the upcoming quarter can be found in WTW’s Insurance Marketplace Realities series (published twice yearly, every spring and fall).
About CLIPS
CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross-section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the second quarter of 2024 with the prices charged for the same coverage during the same quarter of 2023. For this most recent survey, 43 participating insurers representing approximately
About Insurance Consulting and Technology
WTW’s Insurance Consulting and Technology business serves the insurance industry with a powerful combination of advisory services and leading-edge technology. Our mission is to innovate and transform insurance, and we deliver solutions that help clients better select, finance, and manage risk and capital. We work with clients of all sizes globally, including most of the world’s leading insurance groups. Over 1,000 client companies use our specialist insurance software on six continents. With over 1,700 colleagues in 35 markets, we continually strive to be a partner and employer of choice to the insurance industry.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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