The latest findings of WTW’s Commercial Lines Insurance Pricing Survey (CLIPS), reveals that US commercial insurance rates have continued a downward trajectory compared with the prior two quarters, despite an increase of 5.3% in the first quarter of 2025.
CLIPS compares premiums for policies underwritten during the first quarter of 2025 to those for the same coverage lines in the respective quarter of 2024, demonstrating a year-over-year comparison.
The prior two quarters demonstrated an increase in US commercial insurance rates of 5.8% and 5.6%. However, US carriers reported an aggregate price increase of 5.3% in the first quarter of this year, down from 6.3% recorded in the first quarter of 2024.
The survey highlights some coverage lines that stood out with respect to price change rates in the quarter.
Of these, commercial auto maintained a double-digit increase, but it was still lower than the prior quarter, while commercial property continued a strong downward pricing trend, with a slight increase for the first quarter, compared to a double-digit increase a year prior.
Additionally, professional liability rates displayed a higher increase this quarter, but remain relatively low compared to most of the other lines.
The advisory, broking, and solutions firm’s CLIPS is a retrospective look at historical changes in commercial property & casualty insurance (P&C) prices and claims cost inflation.
CLIPS data is based on new and renewal business figures obtained directly from carriers underwriting the business. For this survey, 41 participating insurers representing approximately 20% of the US commercial insurance market (excluding state workers’ compensation funds) contributed data.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, “In the first quarter, we witnessed some interesting trends. Overall, the continued reduction in rate increases is a positive sign for buyers. 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.”
