US Commercial Lines Prices Up 5.3%, Continue Downward Trend: WTW CLIPS

U.S. commercial insurance rates went up again in the first quarter 2025, according to the latest findings from WTW’s Commercial Lines Insurance Pricing Survey (CLIPS).

Carriers reported an aggregate price increase of 5.3% during the first three months of 2025 in the fourth quarter—down from increases of 5.6% and 6.1% for the fourth and third quarters of 2024.

The aggregate price increase for the first quarter 2024 was 6.3%.

“Overall, the continued reduction in rate increases is a very positive sign for buyers,” said Yi Jing, senior director of insurance consulting and technology at WTW.

However, Jing added, “consistent double-digit rate jumps for areas like commercial auto signify continued pricing difficult in the market. The only other coverage area maintaining double-digit rate increases is excess/umbrella liability.”

In Q4 2024, excess and umbrella liability recorded its highest price increase in the past three years, and commercial auto recorded its highest price increase in CLIPS history. For Q1 2025, commercial auto had the largest downward movement from the prior quarter among all surveyed lines.

Commercial property continued a strong downward pricing trend, with just a small increase for during Q1 2025, after large price increases were seen in 2023.

Forty-one participating insurers representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds) contributed data to the survey. CLIPS data is based on new and renewal business figures obtained directly from carriers underwriting the business.

Topics Trends USA Commercial Lines Business Insurance Pricing Trends Willis Towers Watson