Commercial Lines Insurance Pricing Survey: Q1 2025
NEW YORK, June 10, 2025 — While U.S. commercial insurance rates displayed an increase of 5.3% in Q1 2025, the figure continued a downward trajectory compared with the prior two quarters (increases of 6.0% and 5.6%), according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The survey compares premiums for policies underwritten during the first quarter of 2025 to those for the same coverage lines in the respective quarter of 2024, demonstrating a year-over-year comparison. Carriers reported an aggregate price increase of 5.3% in the first quarter, down from 6.3% recorded in the first quarter of 2024.
“In the first quarter, we witnessed some interesting trends. Overall, the continued reduction in rate increases is a very positive sign for buyers.”
Yi Jing | Senior Director, Insurance Consulting and Technology (ICT) at WTW
Some coverage lines stood out with respect to price change rates in the quarter. Notably, Commercial Auto maintained a double digit increase but lower than prior quarter, while Commercial Property continued a strong downward pricing trend, with just a small increase for the first quarter, compared to double digit increase a year prior. Additionally, Professional Liability rates displayed a higher increase this quarter but is still relatively low compared to most of the other lines.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, “In the first quarter, we witnessed some interesting trends. Overall, the continued reduction in rate increases is a very positive sign for buyers. However, consistent double-digit rate jumps for areas like Commercial Auto signify continued pricing difficulty in the market. The only other coverage area maintaining double digit rate increases is Excess / Umbrella Liability.”
CLIPS is a retrospective look at historical changes in Commercial Property & Casualty insurance (P&C) prices and claims cost inflation. A forward-looking analysis of Commercial P&C trends, outlook, and rate predictions can be found in WTW’s Insurance Marketplace Realities series.
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CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. CLIPS participants represent a cross-section of U.S. P&C insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S. This survey compared prices charged on policies written during the first quarter of 2025 with the prices charged for the same coverage during the same quarter of 2024. For this most recent survey, 41 participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data.
WTW’s Insurance Consulting and Technology business serves the insurance industry with a powerful combination of advisory services and leading-edge technology. Our mission is to innovate and transform insurance, and we deliver solutions that help clients better select, finance, and manage risk and capital. We work with clients of all sizes globally, including most of the world’s leading insurance groups. Over 1,000 client companies use our specialist insurance software on six continents. With over 1,700 colleagues in 35 markets, we continually strive to be a partner and employer of choice to the insurance industry.
