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Heading into 2024, insurance buyers should expect more of the same for premium prices, according to WTW’s latest Marketplace Realities report.
“We don’t expect material or sudden changes in the market – for better or worse,” WTW wrote.
Why it matters: While commercial insurance prices show signs of stabilizing, buyers should expect to see higher premiums upon renewal.
By the numbers: WTW predicted price changes across many lines of insurance for 2024. They include:
- General liability: +1 to +4%
- Automobile liability: +4% to +7%
- Workers compensation: -3% to -1%
- Excess workers compensation: -2% to +5%
- Umbrella liability: +4% to +8%
- Excess liability: +2% to +7%
- Non-CAT exposed property: Flat to +10%
- CAT exposed property: +10% to +25%
- Cyber: -5% to +5%
- D&O Public company – Primary: -10% to flat
Zoom in: Looking specifically at healthcare professional liability insurance, WTW reports that markets continue to carefully use capacity. Additionally, batch claims remain problematic, and plaintiffs continue to win massive nuclear claims.
WTW predicts rates will rise for medical professional liability insurance.
- Allied health: +5% to +15%
- Hospital professional: +5% to +20%
- Managed care E&O: +5% to +12%
- Physicians professional liability: +5% to +15%
What we’re watching: The hard insurance market cycle is easing for some insurance lines but remains strong for others, such as property. Insurance buyers should continue to see rising premiums and stricter coverage terms.
Inflation remains a factor to watch. In 2022, inflation was a main driver of increasing claims costs due to higher prices.
And reinsurers could continue to drive prices upwards. Some reinsurers are expressing concerns about social inflation and rate adequacy in the liability lines as we head into 2024.
What they’re saying: “As the reinsurance market continues to exert its influence over retail insurers and capital distribution, our clients may face more uncertainty in 2024 across both property and casualty product lines,” said Jon Drummond, head of broking, North America, for WTW, in a statement.
Go deeper: Check out the Willis Towers Watson Insurance Marketplace Realities 2024 report for more predictions and insights.
