Trends in U.S. Commercial Insurance Rates
In the latest analysis, U.S. commercial insurance rates registered an increase of 3.8% in the third quarter of 2025. This marks a continuation of the downward trend we have seen over the previous quarters, which stood at 3.8% in Q2 2025 and 5.3% in Q1 2025. The insights were drawn from WTW's Commercial Lines Insurance Pricing Survey (CLIPS), which provides a year-over-year perspective on premium pricing in the commercial insurance sector.
Understanding the Price Changes
The recent survey indicates a significant moderation in price growth across various commercial lines. Notably, insurance types such as workers' compensation, directors' and officers' liability, cyber liability, and commercial property insurance witnessed price declines. While excess/umbrella liability still leads in terms of price increases, the rate at which it is increasing has notably slowed down compared to previous quarters.
In contrast, commercial auto insurance continues to exhibit double-digit price growth, securing its place among the rapidly escalating lines of coverage. Interestingly, small and mid-market accounts experienced lower price increases than those observed in the past, while large account pricing still saw upward movement, albeit at a significantly slowed pace. This trend is indicative of a market striving towards stabilization.
Expert Insights on Market Conditions
According to Yi Jing, Senior Director of Insurance Consulting and Technology at WTW, the steady nature of U.S. commercial insurance rates in the third quarter showcases a gradual easing that has been apparent over the past two quarters. Jing emphasizes that while some coverage lines saw slight increases, many others remained stable, suggesting a more measured pricing environment overall.
Insights from CLIPS
The CLIPS survey not only reflects historical changes in Commercial Property & Casualty (P&C) insurance pricing but also provides valuable insights into trends and forecasts within the marketplace. For those interested in future projections, WTW’s Insurance Marketplace Realities series offers a detailed analysis of anticipated trends and rate predictions, drawing from extensive industry data.
About WTW
WTW (NASDAQ: WTW) is dedicated to delivering data-driven, insight-led solutions that cater to the realms of people, risk, and capital. With a strong global presence and deep local expertise spanning across 140 countries, our team collaborates closely with clients to refine strategies, fortify organizational resilience, motivate workforces and optimize overall performance.
Client-Centric Approach
At WTW, our commitment runs deep. We believe in working shoulder to shoulder with our clients to unveil opportunities for sustainable growth and provide insights that truly matter. This hands-on approach enables us to assist our clients in navigating complex market dynamics.
About CLIPS
The data provided by CLIPS is derived from both new and renewal business figures directly sourced from the carriers underwriting these policies. The participating companies represent a well-rounded cross-section of U.S. P&C insurers, including several of the leading ten commercial lines companies and the top 25 insurance groups in the country. This current survey reflects a comparison of prices for policies written in the third quarter of 2025 against those from the same quarter the previous year. Notably, 41 participating insurers contributed data, representing approximately 20% of the U.S. commercial insurance market, excluding state workers' compensation funds.
Frequently Asked Questions
What was the percentage increase in U.S. commercial insurance rates?
As of the third quarter of 2025, the increase was reported at 3.8%.
Which insurance lines saw price declines?
Lines such as workers' compensation, directors' and officers' liability, cyber liability, and commercial property insurance experienced price decreases.
Who conducted the Commercial Lines Insurance Pricing Survey?
The survey was conducted by WTW, providing insights into pricing trends within the commercial insurance market.
How does the current pricing compare to previous quarters?
The current pricing growth of 3.8% is a reduction compared to earlier quarters, indicating a trend towards stabilization.
What is the significance of the CLIPS survey?
CLIPS provides valuable data on the historical shifts in P&C insurance pricing and helps forecast future market trends.
