U.S. commercial insurance rates ease to 3.8% increase

Rhea-AI Summary

WTW (NYSE:WTW) released its Commercial Lines Insurance Pricing Survey (CLIPS) for Q2 2025, revealing U.S. commercial insurance rates increased by 3.8%, down from 5.3% in Q1 2025 and 5.6% in Q4 2024.

The survey showed varied trends across insurance lines: workers compensation, directors' and officers' liability, and cyber experienced price decreases, while commercial property recorded its first price decline after several quarters of slowing growth. Excess/umbrella liability saw the largest increases, and commercial auto maintained double-digit growth. Small and mid-market accounts experienced slightly lower increases, while large accounts continued to rise at a slower pace.

Positive

• Commercial insurance price growth moderation indicates market stabilization
• Price decreases in workers compensation, D&O liability, and cyber lines benefit customers
• Small and mid-market accounts seeing lower price increases

Negative

• Commercial auto insurance maintains double-digit price increases
• Large accounts continue to experience price increases, though at a slower rate

News Market Reaction

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+0.22% News Effect

On the day this news was published, WTW gained 0.22%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Commercial Lines Insurance Pricing Survey: Q2 2025

NEW YORK, Sept. 10, 2025 (GLOBE NEWSWIRE) -- U.S. commercial insurance rates increased 3.8% in the second quarter of 2025, continuing the downward trajectory from the prior two quarters (5.3% in Q1 2025 and 5.6% in Q4 2024), according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten during the second quarter of 2025 to those for the same coverage lines in the respective quarter of 2024, providing a year-over-year comparison. Carriers reported an aggregate price increase of 3.8% in Q2 2025, down from 5.9% in Q2 2024.

Price growth moderated across most lines, with workers compensation, directors’ and officers’ liability, and cyber continuing to have price decreases, and commercial property recording its first price decrease after several quarters of slowing price growth. Excess/umbrella liability saw the largest increases, while commercial auto maintained double-digit growth. Small and mid-market accounts saw slightly lower increases, while large accounts continued to rise, but at a more pronounced slowdown.

"Amidst the ongoing general upward trend, our latest data from the second quarter of 2025 shows a moderation in commercial insurance pricing," said Yi Jing, Senior Director, Insurance Consulting and Technology (ICT), WTW. "While some lines continued to see increases, others remained stable or slightly declined, reflecting a period of more measured rate growth across the market."

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 second quarter of 2025, with the prices charged for the same coverage during the same quarter of 2024. For this most recent survey, 42 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.

Media Contact

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

FAQ

What was the U.S. commercial insurance rate increase in Q2 2025 according to WTW's CLIPS survey?

According to WTW's CLIPS survey, U.S. commercial insurance rates increased by 3.8% in Q2 2025, down from 5.3% in Q1 2025.

Which insurance lines showed price decreases in WTW's Q2 2025 CLIPS report?

Workers compensation, directors' and officers' liability, cyber, and commercial property showed price decreases in Q2 2025.

How did commercial auto insurance rates perform in WTW's Q2 2025 survey?

Commercial auto insurance maintained double-digit price growth in Q2 2025, showing one of the strongest increases among all insurance lines.

What is the trend in commercial insurance pricing for different account sizes according to WTW?

Small and mid-market accounts saw slightly lower price increases, while large accounts continued to rise but showed a more pronounced slowdown in price growth.

How does the Q2 2025 rate increase compare to the same period in 2024?

The Q2 2025 rate increase of 3.8% was lower compared to the 5.9% increase reported in Q2 2024, indicating a significant moderation in pricing.