U.S. commercial insurance prices continued to rise in Q4 2025, albeit at a more moderate pace

U.S. commercial insurance prices grew again in the fourth quarter of 2025, according to WTW’s most recent Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies underwritten during the fourth quarter of 2025 with those charged for the same coverage during the same quarter in 2024. The aggregate commercial price change reported by carriers spiked upward to nearly 10% in the second through fourth quarters of 2020. Since then, it started to decline and decreased to just below 5% in the fourth quarter of 2022 but increased to above 6% in the second quarter of 2023. Over the second half of 2023 and through the first quarter of 2025, the price increase has been around 6% but has started dropping in 2025 and now is just under 3%.

Line of business

With the exception of workers compensation, directors' and officers' liability, commercial property, and cyber, data for all other surveyed lines continue to indicate moderate to significant price increases in the fourth quarter. Most of the lines had a similar or lower price change compared to last quarter. The largest price increases continue to come from excess/umbrella liability. Commercial auto still retained a double-digit price increase. After having significant price increases during 2023, commercial property has had its first price decrease during the second quarter of 2025 and continued in the third and fourth quarters, following several quarters of progressively moderating price increases.

Account size price changes

When comparing account sizes, reported price increases for all sizes of accounts were slightly lower than the prior quarter. Specialty lines continued to have a small price increase as a result of the price increase in professional liability offsetting the price decrease in directors’ and officers’ liability.

CLIPS data points to modest loss ratio improvements of 3% and 1% for 2024 and 2025 respectively. Insurers indicate claim cost inflation lower than earned price increase realized for both 2024 and 2025.