Commercial Insurance Prices Continue Upward, WTW Survey Finds

According to Willis Towers Watson's (WTW's) "Commercial Lines Insurance Pricing Survey (CLIPS) Q1 2025," US commercial insurance prices increased by 5.3 percent in the first quarter of 2025 when compared to the same period in 2024. The aggregate rate change reflects a continued upward trend in pricing, though slightly moderated from the prior quarters.

Per the report, most commercial lines experienced moderate to significant price increases during the quarter. Notable exceptions included workers compensation, directors and officers (D&O) liability, and cyber insurance, which saw little or no change. Excess/umbrella liability continued to show the largest price increases, while commercial property pricing growth slowed substantially compared to 2023 levels—cut in half from the prior quarter. Commercial auto remained in the double-digit range but recorded the largest decline in price change from the previous quarter.

According to WTW, pricing trends varied by account size. Small and mid-market accounts experienced slightly lower price increases than in the previous quarter. Large accounts still saw increases, but with a greater decline in pricing movement than smaller segments. Specialty lines saw a modest overall increase, driven by rising professional liability prices offsetting the decline in D&O liability rates.

The report also noted that loss ratios continued to improve in 2025. According to WTW, earned loss ratios showed favorable development when comparing the 2023–2024 and 2024–2025 policy years.

WTW's CLIPS collects data from commercial insurers each quarter, capturing estimated price changes and loss cost trends across small, mid-market, large, and specialty commercial accounts. As noted in the report, submitted data are reviewed for consistency but not audited.