U.S. Commercial Insurance Rates Rise Moderately in Q4 2025
On March 11, 2026, it was reported that U.S. commercial insurance rates rose by 2.9% in the fourth quarter of 2025. This growth reflects a continuation of the slowing rate increases observed in the previous quarters, with increases of 3.8% noted in both the second and third quarters of 2025. The findings come from WTW's Commercial Lines Insurance Pricing Survey (CLIPS), which assesses year-over-year premium changes for similar coverage lines. This increase is notably lower than the 5.6% rise recorded in the fourth quarter of 2024.
The pricing survey highlighted that commercial insurance rates are showing signs of stability with a moderate pace of increase across most lines. For instance, commercial property saw decreases in rates, while the rate of growth in general/products liability is slowing. In comparison, the increases for multiperil and business-owners policies were smaller than in prior periods. Despite excess/umbrella liability experiencing the largest price increases, they were still lower than the previous quarter's levels, while commercial auto insurance saw strong growth.
Smaller increase margins were noted for small and mid-market accounts, with large accounts also experiencing a deceleration in price growth. Various lines even showed price decreases, contributing to the broader moderation trend in the sector. According to Yi Jing, Senior Director of Insurance Consulting and Technology at WTW, "Commercial insurance pricing continued to moderate in the fourth quarter, reflecting a more stable market. While some lines continue to see increases, others are flattening or declining."
CLIPS serves as a review of historical changes in commercial property and casualty (P&C) insurance pricing and claims cost inflation. For more prospective analysis, WTW offers insights in its Insurance Marketplace Realities series, which forecasts trends and rate expectations. These insights help carriers and providers navigate complex regulatory compliance requirements and emerging market trends.
The data from CLIPS were collected from both new and renewed business figures, with contributions from 41 insurers, covering roughly 20% of the U.S. commercial insurance market. These insurers include a mix of top commercial lines companies and significant insurance groups. The survey measured price changes by comparing policies underwritten during the fourth quarter of 2025 with those in the same period in 2024. WTW continues to provide strategic solutions across risk and capital sectors, leveraging insights from operations in 140 countries.