Commercial Prices Up But the Trend is Downward

Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS) found insurance rates rising again in the first quarter of 2025. However, the upward trend goes downward from the increases seen in 2024.

Commercial lines saw an aggregate jump of 5.3% in the first quarter. WTW’s Yi Jing — the senior director of insurance consulting and technology — said that’s down from 5.6% in the first quarter of 2024 and way down from the 6.1% seen in the fourth and third quarters of 2024.

“Overall, the continued reduction in rate increases is a very positive sign for buyers,” Jing said and pointed to “consistent double-digit rate jumps for areas like commercial auto signify continued pricing difficult in the market. The only other coverage area maintaining double-digit rate increases is excess/umbrella liability.”

In the last quarter of last year, excess and umbrella liability had the highest increases and had them for the last three years. Commercial auto had the highest price increase in the history of CLIPS surveys.

Things are way different in the first quarter of 2025 as commercial auto had the biggest drop of all the lines surveyed. Commercial property also fell significantly.

Source link: Insurance Journal — https://bit.ly/3ZA6335