Rising Premium Renewal Rates for Commercial P&C Insurers in 2025

Commercial P&C Insurers Face Rising Premium Renewal Rates in 2025

Commercial property and casualty (P&C) insurers are experiencing rising premium renewal rates throughout 2025, as revealed by the latest Ivans Index report. Analyzing over 120 million data transactions, the study identifies significant rate surges during the fourth quarter, intensifying price pressures within the commercial insurance market. Regulatory compliance requirements and AI-driven analysis are influencing these trends.

Premium renewal rates show variability across major commercial lines, with general liability exhibiting the most substantial increase. Starting at 3.95% at the year's onset, rates soared to 7.23% by year-end, reflecting a 3.28 percentage point climb. In comparison, commercial property renewal rates reached 8.01% in Q4, while umbrella liability coverage peaked at 9.49%, up from 8.99% in Q3.

Geographic differences play a pivotal role in influencing renewal rates. For instance, Washington state's commercial auto rates averaged 12.67%, well above the national average of 8.06%. Meanwhile, Mississippi's business owner's policy rates surged to 13.72%, and Alabama's general liability rates peaked at a significant 15.56% in September. Amid these shifts, Pennsylvania reported a lower-than-average renewal rate of 3.56% for commercial property insurance, spotlighting regional disparities in the market.

Industry stakeholders, including payers, providers, and carriers, can access detailed insights from the Ivans report to navigate the market shifts. Emphasizing regulatory compliance and effective risk management strategies will be crucial as insurers adjust underwriting and claims processes to accommodate these evolving dynamics.