U.S. commercial insurance rates continue downward trend, dropping to 5.3% increase

Rhea-AI Summary

WTW's Commercial Lines Insurance Pricing Survey (CLIPS) reveals U.S. commercial insurance rates increased by 5.3% in Q1 2025, showing a continued downward trend from previous quarters' increases of 5.8% and 5.6%. This represents a decline from the 6.3% increase recorded in Q1 2024. Commercial Auto maintained double-digit growth but at a lower rate, while Commercial Property showed only a slight increase, down from double-digit growth a year ago. Professional Liability rates increased more than the previous quarter but remained relatively low compared to other lines. The survey, which compares premiums for policies underwritten in Q1 2025 to those in Q1 2024, indicates Excess/Umbrella Liability as the only other coverage area maintaining double-digit rate increases.

Positive

• Overall reduction in rate increases benefits insurance buyers
• Commercial Property rates showed significant moderation from double-digit increases to slight increase
• Professional Liability rates remain relatively low compared to other lines

Negative

• Commercial Auto continues to experience double-digit rate increases
• Excess/Umbrella Liability maintains double-digit rate increases
• Insurance rates still increasing overall at 5.3%, though at a slower pace

Commercial Lines Insurance Pricing Survey: Q1 2025

NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- While U.S. commercial insurance rates demonstrated an increase of 5.3% in the first quarter, the rate continued a downward trajectory compared with the prior two quarters (increases of 5.8% and 5.6%), according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten during the first quarter of 2025 to those for the same coverage lines in the respective quarter of 2024, demonstrating a year-over-year comparison. Carriers reported an aggregate price increase of 5.3% in the first quarter, down from 6.3% recorded in the first quarter of 2024.

Some coverage lines stood out with respect to price change rates in the quarter. Notably, Commercial Auto maintained a double digit increase but lower than prior quarter, while Commercial Property continued a strong downward pricing trend, with just a slight increase for the first quarter, compared to double digit increase a year prior. Additionally, Professional Liability rates displayed a higher increase this quarter but is still relatively low compared to most of the other lines.

Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, "In the first quarter, we witnessed some interesting trends. Overall, the continued reduction in rate increases is a positive sign for buyers. However, consistent double-digit rate jumps for areas like Commercial Auto signify continued pricing difficulty in the market. The only other coverage area maintaining double digit rate increases is Excess / Umbrella Liability."

CLIPS is a retrospective look at historical changes in Commercial Property & Casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of Commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series. 

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

About CLIPS

CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross-section of U.S. P&C insurers that includes many of the top ten commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the first quarter of 2025, with the prices charged for the same coverage during the same quarter of 2024. For this most recent survey, 41 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.

Media Contact

Douglas Menelly
Douglas.Menelly@wtwco.com +1 (516) 972-0380

Arnelle Sullivan
Arnelle.Sullivan@wtwco.com +1 (718) 208-0474

FAQ

What was the commercial insurance rate increase in Q1 2025 according to WTW's CLIPS survey?

According to WTW's CLIPS survey, U.S. commercial insurance rates increased by 5.3% in Q1 2025.

How does WTW's Q1 2025 rate increase compare to previous quarters?

The 5.3% increase in Q1 2025 shows a downward trend compared to increases of 5.8% and 5.6% in the previous two quarters, and is lower than the 6.3% increase in Q1 2024.

Which insurance lines showed the highest rate increases in WTW's Q1 2025 survey?

Commercial Auto and Excess/Umbrella Liability were the only lines showing double-digit rate increases in Q1 2025.

What happened to Commercial Property rates in Q1 2025?

Commercial Property rates showed a significant downward trend, recording only a slight increase compared to double-digit increases a year prior.

How did Professional Liability rates perform in WTW's Q1 2025 survey?

Professional Liability rates showed a higher increase compared to the previous quarter but remained relatively low compared to most other insurance lines.