U.S. commercial insurance prices continue to rise with an aggregate increase of 5.3%

U.S. commercial insurance prices grew again in the first 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 first 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. 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 past six quarters, the price increase has been very close to 6%, dropping now to slightly above 5%.

Line of business

Data for nearly all lines continue to indicate moderate to significant price increases in the first quarter of 2025 with the exception of workers compensation, directors’ and officers’ liability, and cyber. Most of the lines had a similar price change compared with last quarter. The largest price increases continue to come from excess/umbrella liability. After having significant price increases during 2023, commercial property continued to see a price increase in the first quarter of 2025 but at a level much lower than 2023 and half of the prior quarter’s level. Although commercial auto still retained a double-digit price increase, it had the largest downward movement from the prior quarter among all surveyed lines.

Account size price changes

When comparing account sizes, reported price increases for small and mid-market accounts were slightly lower than the prior quarter. Large accounts still retained a price increase but had larger downward movement from the prior quarter. Specialty lines had a small price increase as a result of the price increase in professional liability offsetting the price decrease in directors’ and officers’ liability.