Price hikes forecast to moderate in 2024: Fitch
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Commercial lines pricing increases are anticipated to moderate, but remain positive in most segments through 2024, according to a report Tuesday from Fitch Ratings Inc.
Some lines, including workers compensation and directors and officers liability, could see flat to declining premium rates, the report said.
Maintaining underwriting profitability, however, will still rely on premium rate changes keeping pace with claims cost trends.
The effects of inflation on cost factors including key commodity prices, contract labor litigation costs and medical costs remain highly variable, Fitch said.
“Pricing trends across U.S. commercial lines remain favorable but are somewhat offset by rising inflation and growing economic uncertainty,” Fitch said in its report.
The report data comes from a March review of a group of large, diversified commercial insurers including Chubb Ltd. and American International Group Inc.
