1. U.S. commercial insurance rates increased by 3.8% in Q3 2025. 2. This marks a slowdown from 5.3% growth in Q1 2025. 3. Certain insurance lines, like commercial auto, show double-digit growth. 4. Large accounts continue to see price increases but at a slower rate. 5. WTW's insights indicate a trend towards market stabilization.
FAQ
Why Neutral?
The modest growth in insurance prices may signify a balance in the market, reflecting historical conditions where slow rate increases resulted from competitive pressure. For example, in previous years with similar market dynamics, WTW's stock performed steadily rather than explosively as price escalation slowed.
How important is it?
The report carries significant insights into industry pricing trends, which influence WTW's business. However, the moderate rate increases suggest stability rather than growth, limiting broader market impact.
Why Short Term?
The impact of this report is likely to be felt immediately as it shapes investor sentiment in the coming quarters, particularly affecting stock valuations tied to insurance industry performance.
U.S. Commercial Insurance Rates See Moderate Growth of 3.8% in Q3 2025
On December 15, 2025, WTW (NASDAQ: WTW) reported that U.S. commercial insurance rates increased by 3.8% in the third quarter of 2025. This marked a continuation of the downward trend from previous quarters, as rates had also risen by 3.8% in Q2 2025 and 5.3% in Q1 2025. The findings were released in WTW's latest Commercial Lines Insurance Pricing Survey (CLIPS), which evaluates year-over-year premium comparisons across various coverage lines.
Key Findings from the CLIPS Survey
The recent survey highlighted an aggregate 3.8% price increase, which represents a decrease from a 6.1% rise reported in Q3 2024. Key takeaways from the survey include:
- Moderation of price growth across most commercial lines.
- Price decreases noted in workers compensation, directors’ and officers’ liability, cyber insurance, and commercial property insurance.
- Excess/umbrella liability maintained the highest rate of price increase, though the pace has slowed.
- Commercial auto insurance exhibited sustained double-digit price growth, remaining one of the fastest-rising segments.
- Small and mid-market account pricing showed more modest increases compared to previous periods.
- Large account pricing continued to rise but at a significantly reduced rate.
Market Insights and Trends
Yi Jing, Senior Director of Insurance Consulting and Technology at WTW, noted, “U.S. commercial insurance rates held steady in the third quarter of 2025, continuing the gradual easing we’ve seen over the past two quarters.” This observation reflects a broader trend of market stabilization, where some coverage lines experienced modest price increases while others remained flat.
The CLIPS survey serves as a retrospective analysis of changes in Commercial Property & Casualty (P&C) insurance prices along with claims cost inflation. It provides a foundational perspective for understanding current market dynamics.
About WTW and the CLIPS Survey
WTW (NASDAQ: WTW) specializes in offering data-driven, insight-led solutions in the realms of people, risk, and capital. With a global presence across 140 countries, WTW helps organizations refine strategies and enhance resilience.
The CLIPS survey gathers data from both new and renewal business figures directly from insurance carriers. Participants include a mix of top commercial lines companies and the leading insurance groups in the U.S. For this quarter's survey, 41 participating insurers contributed data, representing approximately 20% of the U.S. commercial insurance market (excluding state workers compensation funds).
Contact Information
For further inquiries or media related questions, please contact:
- Lauren Ryan: Lauren.Ryan@wtwco.com
- Arnelle Sullivan: Arnelle.Sullivan@wtwco.com