U.S. Commercial Insurance Rates Increase 2.5% in Q1 2026

In the first quarter of 2026, U.S. commercial insurance rates saw a 2.5% increase, according to WTW’s Commercial Lines Insurance Pricing Survey (CLIPS). This marks the third consecutive quarter of moderated rate hikes. The survey assesses premium changes by comparing new policies with those from the same quarter in the prior year, highlighting gradual easing in insurance rate increases.

Insurance carriers reported an overall 2.5% upward adjustment in Q1 2026 rates, a notable decrease from the 5.3% rise in Q1 2025. Smaller rate hikes were observed across various segments, including Small Commercial, Mid-Market Commercial, and Large Account Commercial. Despite leading rate growth, Excess/Umbrella Liability saw a slowed rate increase, while Commercial Auto rates dipped below double-digit hikes, a first since Q3 2023.

Yi Jing, Managing Director of Insurance Consulting and Technology at WTW, commented on the findings, “The first-quarter results show a continuation of the moderating pricing environment noted in recent quarters. Despite ongoing rises in Commercial Auto and Excess/Umbrella Liability, their increases have decelerated, with much of the market's pricing trends remaining stable.”

The CLIPS report explores historical shifts in Commercial Property & Casualty (P&C) insurance pricing and claims cost inflation. To delve deeper into future predictions in Commercial P&C, stakeholders can review WTW’s Insurance Marketplace Realities series.

WTW provides strategic, data-driven solutions in risk management, serving clients across 140 regions globally. CLIPS data is derived from both new and renewal business submissions by participating insurers, which composes approximately 20% of the U.S. commercial insurance market. The Q1 2026 pricing compared to the previous year excludes state workers compensation funds.