U.S. Insurance Rates Show Moderate Increases in Q2 2025 Across Personal and Commercial Lines
The MarketScout Market Barometer reported a 4.6% increase in composite rates for U.S. personal lines insurance during the second quarter of 2025, slightly lower than the 4.9% rise seen in the first quarter. Notably, high-net-worth homeowners with properties valued over $1 million experienced the steepest hikes at 6.7%. Personal auto insurance rates also rose by 5.7% in Q2, reflecting ongoing adjustments in the personal lines segment.
In commercial lines, the composite rate grew by 2.8% in Q2 2025, remaining relatively stable compared to the 3% increase registered in Q1. Commercial auto insurance led all commercial coverage classes with a 6.7% increase, while umbrella and excess liability saw a moderated 5% rise, down from 6.7% in the previous quarter. General liability rates climbed by 3.7% in Q2, an acceleration from 2.3% in Q1, indicating selective tightening in underwriting.
Commercial property insurance rates held steady with a 3.6% increase in Q2, consistent with Q1, signaling a gradual improvement in pricing conditions within this sector. MarketScout highlights these trends amid the onset of the hurricane season, cautioning that homeowners’ insurance rates, especially in coastal regions, may rise further and advising agents to guide renewals toward early-year months when pricing tends to be more favorable.
Context from other industry reports aligns with MarketScout's data, confirming a broader softening in the commercial insurance market. The Council of Insurance Agents & Brokers (CIAB) documented a 4.2% increase in commercial property/casualty premiums in Q1 2025—a decline of 22% from late 2024—underscoring easing market pressures. Similarly, WTW's Commercial Lines Insurance Pricing Survey (CLIPS) noted rate increases slowing from 6.1% in Q3 2024 to 5.2% in Q1 2025.
Overall, these insights point to stabilization and selective adjustments in U.S. insurance pricing across personal and commercial lines. The data is particularly relevant for risk managers, brokers, and insurers monitoring underwriting conditions and market cycles amid seasonal risk factors and evolving loss experience.