US Composite Personal Lines Insurance Rates Up 5.79% for 2024
January 13, 2025

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US Composite Commercial Lines Insurance Rates Up 3.75% for 2024

FOURTH QUARTER RATES MODERATED TO PLUS 2.64%

COMPOSITE RATE TRENDS:

  • Q4 2024: Composite rate increased by 2.64%, reflecting a notable moderation
  • Full Year 2024: Composite rate averaged 3.75%, down from 4.56% in 2023

KEY OBSERVATIONS BY RICHARD KERR, CEO OF NOVATAE:

  • Property rates are decelerating due to increased capacity and fewer insured catastrophic events.
  • Umbrella/Excess Liability and Automobile rates continue to rise, but Professional Liability rates are stabilizing.
  • Commercial insurance rates have been on a roller coaster since 2001. While recent years have seen steady increases, intermediaries must prepare for an eventual market shift.
  • The past seven years of rate increases have positively impacted intermediary earnings due to percentage-based compensation.

HISTORICAL CONTEXT:

  • Hard market years: 2001–2004
  • Soft market years: 2005–2011
  • Increasing rate years: 2017 to 2024

Risk & Insurance Education Alliance conducted pricing surveys used in MarketScout, a division of Novatae Risk Group’s analysis of market conditions. These surveys help to further corroborate MarketScout, a division of Novatae Risk Group’s actual findings, mathematically driven by new and renewal placements across the United States.

The following graphic reflects rate changes in US commercial insurance for the last 23 years.

A summary of the fourth quarter 2024 rates by coverage, cyber liability, industry class and account size are set forth below.

By Coverage Class
Commercial PropertyUp 3.3%
Business InterruptionUp 3.3%
BOPUp 3.3%
Inland MarineUp 3%
General LiabilityUp 3.7%
Umbrella/ExcessUp 3.7%
Commercial AutoUp 6.7%
Workers’ CompensationFlat 0%
Professional LiabilityUp 1%
D&O LiabilityUp 1.3%
EPLIUp 1%
FiduciaryUp 1%
CrimeUp 1%
SuretyUp 1%
 
Cyber Liability
CyberUp 2.7% 
By Account Size
Small AccountsUp 3%
Up to $25,000
Medium AccountsUp 2.3%
$25,001 – $250,000
Large AccountsUp 2.7%
$250,001 – $1 million
Jumbo AccountsUp 2.7%
Over $1 million
By Industry Class
ManufacturingUp 3%
ContractingUp 3.3% 
ServiceUp 2.7% 
HabitationalUp 3% 
Public EntityUp 2% 
TransportationUp 5.3% 
EnergyUp 2.3% 

About MarketScout, a Division of Novatae Risk Group

Founded in 2000, MarketScout is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd's Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. MarketScout’s company culture and sense of community encourages growth, learning and collaboration. The company has been named as one of the Best Places to Work in Insurance by Business Insurance for ten consecutive years. In November 2022, MarketScout joined Novatae Risk Group and Richard Kerr was named the combined companies’ CEO.