U.S. commercial insurance rates moderate to 3.8%

Rhea-AI Summary

WTW (NYSE:WTW) reported that U.S. commercial insurance pricing held at a 3.8% year‑over‑year increase in Q3 2025, continuing a moderation trend from 5.3% in Q1 2025 and 3.8% in Q2 2025.

The survey shows Q3 2025 pricing below 6.1% in Q3 2024, with most lines moderating: workers compensation, D&O, cyber, and commercial property saw price decreases, while excess/umbrella remained the highest-growing line (but cooled) and commercial auto kept double‑digit growth. Small and mid‑market accounts recorded more modest increases; large account pricing rose but the pace slowed.

Positive

• Aggregate pricing moderated to 3.8% YoY in Q3 2025
• Commercial auto sustained double‑digit price growth in Q3 2025

Negative

• Q3 2025 pricing down from 6.1% in Q3 2024
• Workers compensation, D&O, cyber, commercial property experienced price decreases

News Market Reaction

+1.17%

1 alert

+1.17% News Effect

On the day this news was published, WTW gained 1.17%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 2025 rate change: 3.8% Q2 2025 rate change: 3.8% Q1 2025 rate change: 5.3% +1 more

4 metrics

Q3 2025 rate change 3.8% U.S. commercial insurance rates vs prior-year quarter

Q2 2025 rate change 3.8% U.S. commercial insurance rates vs prior-year quarter

Q1 2025 rate change 5.3% U.S. commercial insurance rates vs prior-year quarter

Q3 2024 rate change 6.1% Aggregate commercial price increase year-over-year

Market Reality Check

Price: $287.74 Vol: Volume 702,080 is roughly...

normal vol

$287.74 Last Close

Volume Volume 702,080 is roughly in line with the 20-day average of 685,646 (relative 1.02x). normal

Technical Price $326.93 is trading above the 200-day MA at $321.25 and 7.33% below the 52-week high.

Peers on Argus

WTW gained 0.41% with key insurance broker peers also positive: BRO +2.27%, AJG ...

WTW gained 0.41% with key insurance broker peers also positive: BRO +2.27%, AJG +2.54%, MMC +1.49%, AON +1.48%, ERIE +1.11%, suggesting broadly constructive sentiment across brokers.

Historical Context

5 past events · Latest: Dec 11 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Risk report release	Neutral	+3.4%	Political Risk Index on shifting tariff deals and geopolitical alignment.
Dec 10	Fintech acquisition	Positive	-2.2%	Agreement to acquire Cushon to expand UK DC master trust presence.
Dec 10	Broker acquisition	Positive	-2.2%	Deal to acquire Newfront for <b>$1.3B</b> with expected cost synergies.
Dec 04	Product launch	Positive	+1.0%	Launch of Radar Fusion cloud-native underwriting and analytics platform.
Dec 03	Dividend declaration	Positive	+1.0%	Regular quarterly cash dividend of <b>$0.92</b> per share announced.

Pattern Detected

Strategic product launches, reports, and dividends have often coincided with modest positive moves, while larger M&A announcements drew short-term negative reactions.

Recent Company History

Over the past weeks, WTW announced multiple strategic updates. A geopolitical tariff and political risk report on Dec 11, 2025 coincided with a +3.36% move. Two sizeable acquisitions disclosed on Dec 10, 2025 saw a -2.24% reaction, while the launch of Radar Fusion underwriting software on Dec 4, 2025 and a regular $0.92 quarterly dividend on Dec 3, 2025 each aligned with a +0.99% move, showing mixed reactions to growth initiatives versus incremental updates.

Market Pulse Summary

This announcement highlights that U.S. commercial insurance rates grew 3.8% in Q3 2025, easing from ...

Analysis

This announcement highlights that U.S. commercial insurance rates grew 3.8% in Q3 2025, easing from 5.3% in Q1 2025 and 6.1% in Q3 2024. Pricing moderated across many lines, with some segments seeing decreases and others still rising. Against WTW’s recent acquisitions, product launches, and steady dividends, this survey adds context on underlying market conditions. Investors may monitor future CLIPS updates and line-specific trends to gauge the sustainability of this stabilization.

Key Terms

commercial lines insurance pricing survey, claims cost inflation, commercial property & casualty insurance (p&c), excess/umbrella liability, +1 more

5 terms

commercial lines insurance pricing survey technical

"according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey"

A commercial lines insurance pricing survey tracks how insurance companies are changing the premiums they charge for business policies such as property, liability and workers’ compensation. It acts like a market thermometer for insurance pricing, showing whether rates are rising or falling and revealing insurers’ pricing power and risk appetite; investors use it to gauge potential revenue, profit margins and competitive pressure in the insurance sector.

claims cost inflation technical

"historical changes in Commercial Property & Casualty insurance (P&C) prices and claims cost inflation."

Claims cost inflation is the rising amount insurers must pay out for each claim as the prices of goods, services and medical care increase or claims become more severe. Think of it like household bills going up: if the cost to fix things or pay medical bills grows, the insurer’s expenses rise, which can squeeze profits, force higher premiums, or require larger financial reserves — all important signals for investors assessing an insurer’s financial health.

commercial property & casualty insurance (p&c) financial

"historical changes in Commercial Property & Casualty insurance (P&C) prices and claims cost inflation."

Commercial property & casualty (P&C) insurance covers businesses against physical damage to buildings, equipment and inventory (property) and against legal or financial responsibility for injuries, lawsuits or third‑party losses (casualty). Think of it as a business’s safety net that pays to fix damage or settle claims so operations can continue. Investors watch P&C because premium income, claim costs and exposure to large disasters directly affect insurers’ profits and the financial health of insured companies.

excess/umbrella liability financial

"Excess/umbrella liability remained the line with the highest rate of price increases"

Excess/umbrella liability is extra insurance that kicks in when a company’s primary liability policy runs out or doesn’t cover a claim; think of it as an added safety net or higher ceiling for large lawsuits or accident claims. Investors care because these policies limit the chance of a single large claim wiping out cash, driving unexpected legal costs, or causing big swings in earnings and the balance sheet.

directors’ and officers’ liability financial

"workers compensation, directors’ and officers’ liability, cyber, and commercial property insurance"

Directors’ and officers’ liability is the personal and corporate legal responsibility that board members and senior managers face if their decisions or actions harm the company, shareholders, customers or regulators. Investors care because lawsuits, fines or settlements tied to that liability can drain cash, increase insurance costs, distract management and signal weak oversight—similar to a ship’s captain being held accountable for navigation mistakes, which can affect the vessel’s value and safety.

AI-generated analysis. Not financial advice.

Commercial Lines Insurance Pricing Survey: Q3 2025

NEW YORK, Dec. 15, 2025 (GLOBE NEWSWIRE) -- U.S. commercial insurance rates remained at a 3.8% increase in the third quarter of 2025, continuing the downward trend from the previous two quarters (3.8% in Q2 2025 and 5.3% in Q1 2025), according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten in a given quarter compared with the same coverage lines in the prior year, providing a year-over-year perspective. Carriers reported an aggregate price increase of 3.8% in Q3 2025, down from 6.1% in Q3 2024.

Price growth continued to moderate across most commercial lines with workers compensation, directors’ and officers’ liability, cyber, and commercial property insurance experiencing price decreases. Excess/umbrella liability remained the line with the highest rate of price increases, though the pace has eased compared to prior quarters. Commercial auto sustained double-digit price growth, maintaining its position as one of the fastest-rising lines. Small and mid-market accounts saw more modest increases than in previous periods, while large account pricing continued to rise, but the rate of increase slowed significantly, reflecting a broader trend of market stabilization.

"U.S. commercial insurance rates held steady in the third quarter of 2025, continuing the gradual easing we’ve seen over the past two quarters," said Yi Jing, Senior Director, Insurance Consulting and Technology (ICT), WTW. "While some coverage lines experienced modest increases, others remained flat, highlighting a period of more measured pricing 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 third 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

Lauren Ryan
Lauren.Ryan@wtwco.com

Arnelle Sullivan
Arnelle.Sullivan@wtwco.com

FAQ

What did WTW report for U.S. commercial insurance pricing in Q3 2025 (WTW)?

WTW reported an aggregate 3.8% year‑over‑year increase in U.S. commercial insurance pricing for Q3 2025.

How did Q3 2025 commercial insurance pricing compare to Q3 2024 for WTW (WTW)?

Q3 2025 pricing at 3.8% was lower than Q3 2024's 6.1%, indicating moderation year over year.

Which commercial insurance lines decreased in price in Q3 2025 according to WTW (WTW)?

WTW reported price decreases in workers compensation, directors’ and officers’ liability, cyber, and commercial property in Q3 2025.

Which lines showed the largest increases in Q3 2025 in WTW's survey (WTW)?

Excess/umbrella had the highest rate of increases (though easing), and commercial auto maintained double‑digit growth in Q3 2025.

How did pricing trends differ by account size in Q3 2025 per WTW (WTW)?

Small and mid‑market accounts saw more modest increases, while large account pricing continued rising but at a significantly slower pace.