Commercial insurance rates in the US rose 3.8% in the second quarter of 2025, continuing a slowing trend in premium growth, according to WTW's latest Commercial Lines Insurance Pricing Survey (CLIPS).
The increase compares with 5.3% in the first quarter of 2025, 5.6% in the fourth quarter of 2024, and 5.9% in the second quarter of 2024.
The survey, which measures year-over-year changes by comparing policies underwritten in the quarter against those from the same period the year before, showed that price growth moderated across most commercial lines.
Workers' compensation, directors’ and officers’ liability, and cyber continued to record price decreases. Commercial property registered its first decline following several quarters of slower growth. By contrast, excess and umbrella liability experienced the largest increases, and commercial auto maintained double-digit growth.
Account size influenced pricing as well, with small and mid-market accounts seeing slightly lower increases. Large accounts also continued to rise but showed a sharper slowdown in pace.
Yi Jing, senior director, Insurance Consulting and Technology at WTW, said the second-quarter data indicated a period of more measured rate growth across the commercial market. He noted that while some lines remained on an upward trend, others were stable or saw modest declines.
The moderation in rate increases comes as insurers balance several market forces. While inflationary pressures and elevated claims costs remain factors, improved reinsurance availability and stronger underwriting discipline are helping ease upward pressure on pricing. The shift suggests insurers may be reaching the end of a prolonged hard market cycle, though specific segments such as commercial auto and excess liability remain under stress.
Looking ahead, analysts expect pricing to vary by line, with competitive conditions and loss experience shaping renewal outcomes. Commercial property, in particular, may continue to face rate adjustments depending on catastrophe exposure and reinsurance renewals.
