U.S. Commercial Insurance Rates Moderate with 3.8% Increase in Q3 2025

U.S. commercial insurance rates recorded a 3.8% increase in the third quarter of 2025, continuing a downward trend from earlier in the year and the previous year, according to Willis Towers Watson's (WTW) Commercial Lines Insurance Pricing Survey (CLIPS). This marks a significant moderation from a 6.1% increase in Q3 2024 and a steady decline compared to 5.3% growth in Q1 2025. The survey, which benchmarks year-over-year premium changes across major commercial lines, reveals a market moving towards stabilization with more moderated pricing adjustments overall. Most commercial insurance lines have seen declining or stable price growth in Q3 2025. Notably, workers compensation, directors’ and officers’ liability, cyber insurance, and commercial property insurance experienced price decreases. Despite the easing trend, excess/umbrella liability insurance maintained the highest rate of increase among coverage lines, albeit at a slower pace. Commercial auto continues to see robust premium growth, delivering double-digit increases and remaining one of the fastest-rising insurance segments. Pricing changes varied by market segment, with small and mid-market accounts facing modest rate rises compared to previous quarters. Large accounts continued to see premium increases; however, the pace of growth significantly slowed, reflecting increased market stability and a gradual balancing of risk and return for insurers. The data underpinning CLIPS comes from 41 top U.S. commercial lines insurers representing nearly 20% of the market, excluding state workers compensation funds. CLIPS offers a longitudinal dataset, tracking premiums and loss cost inflation dating back to 2003, making it a key resource for benchmarking historical insurance pricing trends. WTW further supplements CLIPS with forward-looking analyses through their Insurance Marketplace Realities series, which forecasts pricing and market trends. This comprehensive insight assists insurers and brokers in navigating market dynamics and adapting strategies based on evolving risk conditions and regulatory frameworks. Willis Towers Watson provides consulting, brokerage, and technology services that leverage global and local expertise in risk, capital, and people management. Their integrated approach helps insurers optimize underwriting strategies and align pricing with prevailing market conditions. The Q3 2025 CLIPS results indicate a commercial insurance market growing more disciplined and balanced, with evolving pricing dynamics across coverage lines essential for risk and capital management in an uncertain economic environment.