Commercial Insurance Price Growth Continued at Slower Pace in Q4 2025
U.S. commercial insurance prices grew at a more measured rate of just under 3% in the fourth quarter of 2025 compared with the year-earlier quarter, the slowest pace in years, according to WTW’s Commercial Lines Insurance Pricing Survey.
WTW’s CLIPS survey compares premiums for commercial lines policies underwritten in a given quarter with the same coverage lines in the prior year, providing a year-over-year perspective on pricing.
The overall deceleration in pricing growth reflects a significant shift from recent years, WTW said. Commercial insurance pricing spiked to nearly 10% during mid-2020 before declining gradually through 2022, when it dipped below 5%. Prices then accelerated to above 6% in mid-2023 and held around that level for much of 2024 before trending downward throughout 2025.
The overall moderation masks divergent trends across different coverage lines, according to the report.
Excess and umbrella liability continues to command the steepest increases, while commercial auto policies maintain double-digit price growth. Meanwhile, commercial property has reversed direction entirely, posting price decreases for three consecutive quarters beginning in the second quarter of 2025 — a notable shift after substantial increases during 2023.
Workers’ compensation, directors and officers liability, and cyber insurance also bucked the broader upward trend, with pricing remaining relatively flat or declining in Q4, per WTW.
Market Dynamics Improve for Insureds and Carriers
The slowdown in rate increases suggests improving market conditions on multiple fronts. Carriers reported modestly better loss ratios, improving by 3% in 2024 and 1% in 2025, indicating that claims experience is stabilizing, WTW said. Additionally, the data reveals that claim cost inflation has remained lower than the earned price increases insurers have realized — meaning carriers’ pricing has outpaced their actual cost increases, improving their margins.
View the full report here. &


