Premiums across all account sizes rose by an average of 5.4% in Q4 2024, a slight increase from the previous quarter’s 5.1%. As in Q3 2024, premiums for medium accounts had the largest average increase of 6.4%, closely followed by 6.3% for large accounts.
Most lines of business recorded average increases in premiums roughly comparable to or lower than those reported in Q3 2024. Workers compensation, D&O, and cyber premiums continued to fall this quarter, and employment practices joined them with an average decrease of 0.2%.
Cyber premiums fell by an average of 1.8% this quarter, a record low for the line and the second one set in 2024 after the 1.7% decrease reported in Q2 2024. Increased underwriting capacity and competition among carriers for U.S. cyber business, as well as increased cyber resiliency, may all have contributed to this downward pressure on premiums.
Commercial auto and umbrella had the highest average increases in premiums out of all lines, at an average of 8.9% and 8.7%, respectively.
According to a report by CBIZ on commercial auto market conditions, driver shortages, repair costs, and supply chain issues all drove up the frequency and severity of commercial auto claims in 2024—and a report by AM Best found the average loss per commercial liability claim doubled since 2014. Increased claim frequency and severity are associated with increased premium costs. On top of that, the recent rise in fleet electrification can also result in higher premiums due to the unique risk profile of electric vehicles.
LEARN MORE
Related Blogs
Risk Management
PUBLISHED
June 3rd, 2025
K-12 Schools: Make Cybersecurity a Priority
Adam Adler
Given that 82% of K-12 schools experienced a cyber incident between July 2023 and December 2024 (per a new Center for Internet Security report), ...
Read More
Risk Management
PUBLISHED
May 22nd, 2025
Most Lines of Business Softening, Litigation Influencing Others, The Council’s Q1 2025 P/C Market Survey Shows
The MJ Companies
There were clear signs of softened market conditions this quarter, a continuation of a trend in 2024 of flat to lower premium increases for ...
Read More
Risk Management
PUBLISHED
April 28th, 2025
April Marks Distracted Driving Awareness Month
The MJ Companies
The National Safety Council designates April as Distracted Driving Awareness Month. This annual campaign is intended to raise awareness about the dangers of distracted ...
Read More
Risk Management
PUBLISHED
April 15th, 2025
The Impact of Tariffs on the Commercial Insurance Market
The MJ Companies
Tariffs refer to taxes on goods traded internationally. When imported goods reach a country’s border, its government collects tariffs, also called customs duties, based ...
Read More
Risk Management
PUBLISHED
April 8th, 2025
Thoughts After a Deep Dive Into the CIAB Commercial Property/Casualty Market Report
Ryan Daniele, Kate Murray, and Jake Burris
After spending some time with the Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report for Q4 2024, a few things stood out ...
Read More
Risk Management
PUBLISHED
March 25th, 2025
2025 Market Outlook: Commercial Auto Insurance
The MJ Companies
For much of the past decade, the commercial auto insurance market has been challenging for both insurers and insureds—a trend that’s expected to continue ...
Read More