US Commercial Insurance Rate Increases Continue to Moderate in First Quarter

Commercial insurance rates in the United States increased 2.5 percent during the first quarter of 2026, according to WTW's Commercial Lines Insurance Pricing Survey (CLIPS). The increase marks the third consecutive quarter of moderating rate growth and continues a longer-term trend of easing pricing following the sharp increases reported during 2020.

According to WTW, insurers reported an aggregate price increase of 2.5 percent in the first quarter of 2026, down from 5.3 percent during the same period in 2025. The survey compares premiums for policies underwritten during the quarter with premiums for the same lines of coverage 1 year earlier.

WTW said commercial insurance pricing increased sharply during 2020, reaching nearly 10 percent during the second through fourth quarters of that year. Pricing later declined to just below 5 percent in the fourth quarter of 2022 before increasing to more than 6 percent in the second quarter of 2023. Rate increases remained near 6 percent through the first quarter of 2025 before declining to the current level.

Pricing trends softened across most commercial insurance segments during the first quarter, including small commercial, midmarket commercial, and large account commercial business, according to the CLIPS.

Most surveyed lines continued to experience moderate price increases, although workers compensation, directors and officers liability, commercial property, and cyber were exceptions, according to WTW. The firm also reported that commercial property pricing continued a decline that began in the second quarter of 2025 after several quarters of moderating increases.

WTW said excess/umbrella liability continued to experience the largest rate increases among commercial lines, although those increases were lower than in the previous quarter. Commercial auto also remained among the lines with the largest increases, but pricing rose at a single-digit rate for the first time since the third quarter of 2023.

Reported price increases were slightly lower across all account sizes compared with the prior quarter, according to WTW. Specialty lines recorded a small overall increase as higher professional liability pricing was partially offset by lower directors and officers liability pricing.