U.S. Commercial Insurance Rates Hold Steady at 3.8% Increase in Q3 2025

The U.S. commercial insurance market showed a continued trend of moderated rate increases in the third quarter of 2025, with an average price rise of 3.8%. This marks a steady pattern compared to previous quarters, where Q2 2025 also saw a 3.8% increase and Q1 2025 higher at 5.3%. Year-over-year, the increase has declined significantly from 6.1% recorded in Q3 2024. The data comes from Willis Towers Watson's (WTW) Commercial Lines Insurance Pricing Survey (CLIPS), which tracks premium changes across key commercial property and casualty lines using direct carrier reporting from a significant share of the U.S. market. Several commercial lines experienced price decreases, including workers compensation, directors' and officers' liability, cyber insurance, and commercial property coverage. Despite this easing, excess/umbrella liability insurance continued to lead in price increases, although the pace of growth has slowed. Meanwhile, commercial auto liability remained among the fastest-growing lines, showing persistent double-digit increases in premiums. Market segmentation data revealed that small and mid-market commercial accounts encountered smaller premium growth compared to earlier periods. Large accounts still faced increasing rates, yet at a decelerated pace, signaling a broader trend toward pricing stabilization within the commercial insurance landscape. This dynamic suggests insurers are adjusting their pricing strategies in response to evolving risk profiles and claim cost trends. WTW’s CLIPS survey is a retrospective tool providing insight into historical pricing and claims inflation for Commercial P&C insurance. It serves as a foundational resource for insurance professionals aiming to understand market movements and anticipate future rate trends. For forward-looking insights, WTW also publishes the Insurance Marketplace Realities series that complements CLIPS data with market outlooks and rate predictions. The 2025 Q3 survey incorporated input from 41 U.S. insurers representing about 20% of the commercial insurance market, excluding state workers compensation funds. The diverse insurer base includes many of the top U.S. commercial lines carriers and insurance groups. This extensive participation ensures a comprehensive indicator of pricing trends and market conditions, relevant for underwriting, risk management, and strategy development within the industry.