Renewal Rates Rise Sharply in Final Quarter of 2025, Capping Year of Steady Commercial Lines Increases

Commercial property & casualty insurers closed 2025 with accelerating premium renewal rates across most major commercial lines, according to the latest Ivans Index report analyzing over 120 million data transactions.

While average renewal rate changes remained elevated for most lines, the momentum picked up considerably in the fourth quarter of 2025, signaling continued pressure on pricing in the commercial insurance market, according to the report.

Diverging Trends Signal Complex Year Ahead

Premium renewal rates painted a mixed picture across the six major commercial lines tracked by the index, Ivans said

General liability emerged as line with the sharpest increases, with rates jumping dramatically from 3.95% in the first quarter to 7.23% by year-end—a 3.28 percentage point climb that represented the highest average premium renewal rate change for the year.

Commercial property renewal rates also grew in the final quarter, averaging 8.01% in Q4 compared to 7.64% in Q3, capping the year at an average increase of 8.03%.

Umbrella liability coverage commanded the highest renewal rates throughout 2025, registering 9.49% by Q4 compared with 8.99% in Q3. Commercial auto and business owner’s policy rate increases both softened slightly in the fourth quarter, with rates decreasing from their Q3 levels to 6.97% and 7.52% increases in Q4, respectively.

Workers’ compensation stood apart as the lone commercial line with a decline in premium renewal rates, for the second consecutive year. Premium renewal rates declined an average 1.61% in Q4, compared with 1.4% average declines in Q3.

Regional Variations and Sector-Specific Pressures

Geography played a meaningful role in shaping renewal outcomes, with certain states experiencing rate movements far exceeding national averages, according to Ivans’ analysis.

Washington state saw commercial auto rates climb to an annual average of 12.67% in Q4—a 4.6 percentage point premium over the nationwide average of 8.06%. Mississippi led premium increases in business owner’s policy coverage, with annual rates reaching 13.72% compared to the national average of 7.88%.

General liability renewal rates in Alabama surged to 11.52% for 2025, reflecting significant volatility that peaked at 15.56% in September. Meanwhile, Pennsylvania bucked national trends in commercial property, posting an annual average of just 3.56%—well below the 8.03% national average—demonstrating the divergent pressures felt across regions.

Obtain the full report here. &