Commercial Insurance Rates Climb 6.1% in Q3 2024 as Market Changes Continue
According to WTW’s latest survey, commercial lines insurance rates saw an overall increase of 6.1% in the third quarter of 2024. This shows a continuation of the trend observed since the end of the pandemic when quarterly prices increased by a staggering 6%. For the second quarter, results showed an increase of 5.9%, with the first quarter recording a 6.3% rise—therefore, showing continuous adjustments in the insurance market.
But what are the factors causing the increase in commercial insurance pricing? As per The Commercial Lines Insurance Pricing Survey (CLIPS) conducted by WTW, some sectors such as commercial auto and excess/umbrella liability continue to face staggering pricing pressures. However, areas such as commercial property are finally showing signs of stability. This has led to the transition of the Insurance market. Insurers are adapting to these changes by increasing their prices due to various risks faced, highlighting the challenges faced by businesses while managing insurance costs – while constantly living under the threat of various risks such as cyberattacks or liability claims.
A key takeaway from this survey is that the demand for package commercial multi-peril and business owner policies has reached perhaps its highest level in over a decade. Such policies offer businesses a wide variety of coverages, and that explains why all businesses are attracted to purchasing such policies – as they receive greater and adequate protection in the ever-changing market.
In conclusion, it can be said that the commercial insurance market is adapting to the wide variety of risks faced by businesses, due to which, insurers are also likely to increase their premiums in specific areas. It is essential for business owners to vigilantly assess their coverage needs and come up with smart strategies to mitigate the risks arising, to keep up with the increasing insurance costs.
For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123.
