WTW: US commercial insurance rate increases slow to 5.3% in Q1

By Michael Loney

June 10 - (The Insurer) - U.S. commercial insurance rates increased 5.3% in the first quarter of this year, representing a sequential deceleration from the previous two quarters, WTW’s Commercial Lines Insurance Pricing Survey has shown.

The 5.3% increase in the first quarter compared with increases of 5.8% in Q3 2024 and 5.6% in Q4 2024.

The survey compares premiums for policies underwritten during the first quarter of 2025 to those for the same coverage lines in the respective quarter of 2024.

The 5.3% aggregate rate increase in the first quarter was also down from 6.3% in the first quarter of 2024.

Commercial auto maintained a double-digit increase, although lower than in Q4 2024.

WTW said that commercial property “continued a strong downward pricing trend, with just a slight increase for the first quarter, compared to double-digit increase a year prior.”

Professional liability rates displayed a higher increase in Q1 but is still relatively low compared to most of the other lines.

“Overall, the continued reduction in rate increases is a positive sign for buyers,” said Yi Jing, senior director, insurance consulting and technology at WTW. “However, consistent double-digit rate jumps for areas like commercial auto signify continued pricing difficulty in the market.

“The only other coverage area maintaining double-digit rate increases is excess/umbrella liability."

WTW's feedback on Q1 rates follows Marsh’s index showing U.S. commercial rates fell 1% on average in the first quarter of this year, compared with flat change in Q4 2024.

In addition, the Council of Insurance Agents & Brokers survey showed that U.S. commercial insurance premiums rose by an average of 4.2% in Q1 2025, a sequential deceleration from the 5.4% reported by respondents in Q4 2024.