U.S. commercial insurance rates moderate to 2.9% as market continues to stabilize

In the fourth quarter of 2025, U.S. commercial insurance rates saw a modest increase of 2.9%, signaling a continued trend of stabilization in the market, as reported by WTW's Commercial Lines Insurance Pricing Survey (CLIPS). This increase is a decrease from the 3.8% observed in the previous two quarters and 5.6% in the same quarter of 2024. The results reflect a year-over-year assessment of premiums for newly underwritten policies and renewals, demonstrating a gradual easing of prices across various lines of insurance.

The moderation of pricing trends was evident across most commercial lines. Notably, the commercial property sector reported price decreases, while increases in general and products liability insurance also continued to slow down. Other categories, such as commercial multi-peril and business-owners policy insurance, exhibited smaller price bumps compared to earlier periods. Excess/umbrella liability insurance remained the category with the steepest price hikes, though these were diminished relative to the previous quarter. Meanwhile, commercial auto insurance persisted in showing strong growth.

The survey highlights that small and mid-market accounts are experiencing more moderate increases, further contrasting with the steady rises seen in large account pricing. This broader trend indicates a market that is stepping back from the significant increases of previous years, reflecting a more balanced approach to pricing.

Yi Jing, senior director at WTW, noted that the commercial insurance pricing landscape is becoming more stable, with a mixture of increases, flat rates, and declines across different lines of coverage. This data from CLIPS is crucial for analyzing historical price movements and claims cost inflation in the Commercial Property & Casualty insurance sector, reinforcing the notion of a maturing marketplace.

The U.S. commercial insurance market is witnessing a notable moderation in pricing, with rates increasing by only 2.9% in Q4 2025, down from 5.6% in the same quarter the previous year. This trend indicates a shift towards stabilization after a prolonged period of rate hikes, influenced by various factors including claims costs, market competition, and economic conditions.

The latest WTW Commercial Lines Insurance Pricing Survey (CLIPS) highlighted that while certain lines, such as excess/umbrella liability, continue to see significant increases, many others are either flattening or experiencing reductions. For instance, commercial property rates are showing declines, and small to mid-sized accounts are now facing more modest increases compared to earlier periods. This suggests a maturing market where insurers are becoming more selective and strategic in their underwriting practices.

As businesses assess their insurance needs, this stabilization presents opportunities for cost management. Organizations should consider reviewing their policies and potentially shopping around for better rates, as increased competition among carriers is likely to lead to improved offers. The moderation in commercial auto insurance pricing, for example, could be beneficial for companies with significant vehicle fleets.

However, it's crucial to understand that while the overall market is stabilizing, specific industries or types of coverage may still face challenges. Businesses with unique risks should prepare for higher premiums and ensure their coverage is tailored to adequately address those exposures.

In summary, the commercial insurance landscape is evolving towards a more balanced and competitive environment. Companies should leverage this by conducting comprehensive reviews of their insurance strategies to capitalize on moderation in rates while ensuring they maintain the necessary protection. It is crucial to stay informed about ongoing market trends, as they will significantly influence decision-making in the coming quarters.