Inflation is the latest driver of rising business insurance costs

American companies are paying more for insurance, but unlike other higher inflation-related costs, this has been going on for several years now. The good news is that the rise in prices seems to be slowing down.

U.S. commercial insurance prices rose 12% on average in the first quarter of this year, compared to the year-ago period, according to brokerage unit Marsh of McLennan Marsh. Many companies have faced double-digit annual rate increases since 2019 as insurers put a price war behind them.