Commercial Renewal Rates Climb Year over Year but Slip from First Quarter

Average premium renewal rate changes across most major US commercial insurance lines increased year over year in the second quarter of 2025, according to the latest IVANS Index. However, nearly all saw a decline from first-quarter levels, with general liability as the exception. 

"Similar to last quarter, premium renewal rates decreased for nearly all major commercial lines during the second quarter, continuing the trend of a slowly softening market after several hard market years," Kathy Hrach, senior vice president of product management at IVANS, said. 

Premium renewal rate changes by line of business during the second quarter include the following. 

• Commercial auto. The second-quarter average premium renewal rate change for commercial auto was 8.43 percent, a decrease from the first quarter's 9.24 percent. The lowest rate change was in April at 8.41 percent, and the highest was in May at 8.45 percent. 
• Businessowners policy (BOP). The BOP premium renewal rate change declined in the second quarter, averaging 7.87 percent versus 8.56 percent in the first quarter. The quarter's highest rate change occurred in April at 7.98 percent, and the lowest occurred in June at 7.74 percent. 
• General liability. The premium renewal rate change for general liability increased to an average of 4.66 percent in the second quarter, up from 3.95 percent in the first quarter. The low was in April at 4.33 percent, and the high was in May at 4.86 percent. 
• Commercial property. The average premium renewal rate change for commercial property was 7.89 percent in the second quarter, down from 8.57 percent in the first quarter. The quarter's lowest rate change came in April at 7.70 percent and peaked in June at 8.19 percent. 
• Umbrella. The umbrella premium renewal rate change averaged 9.07 percent in the second quarter, slightly down from 9.26 percent in the prior quarter. The highest rate change occurred in April at 9.41 percent, and the lowest occurred in June at 8.69 percent. 
• Workers compensation. The premium renewal rate change for workers compensation averaged a 1.75 percent decrease in the second quarter, compared to a 1.51 percent decrease in the first quarter. The lowest point was in May at a 1.87 percent decrease, with the highest was in June at a 1.61 percent decrease. 

Ms. Hrach added, "The IVANS Index will continue to deliver insights into the longevity of these decreases as we see how macroeconomic trends and severe weather events will influence rates." 

The IVANS Index is based on more than 120 million data transactions from over 38,000 agencies and 600 insurers and managing general agents. It measures year-over-year premium changes for consistent policies and is published monthly as part of the IVANS Market Insights platform.