Q2 US Commercial Insurance Sees Casualty Rate Rise Amid Nuclear Jury Verdicts

In Q2, commercial insurance rates largely decreased globally with an average 4% drop across most regions and lines, and US rates were stable after a slight decrease in Q1. However, casualty insurance rates, covering third-party losses such as damages from company vehicles or products, rose 4% globally and 9% in the US, and excluding workers' compensation, US casualty rates increased 12%. The primary driver for these increases is frequent and severe casualty claims in the US, particularly large jury verdicts known as 'nuclear' verdicts, defined as awards of $10 million or more.