U.S. commercial insurance rates moderate to 3.8%

Core Insights - U.S. commercial insurance rates increased by 3.8% in Q3 2025, maintaining the same rate as in Q2 2025, and down from 5.3% in Q1 2025, indicating a continued downward trend in pricing [1][2] - The aggregate price increase of 3.8% in Q3 2025 is a decrease from 6.1% in Q3 2024, reflecting a moderation in price growth across most commercial lines [1][2] Pricing Trends - Workers compensation, directors' and officers' liability, cyber, and commercial property insurance saw price decreases, while excess/umbrella liability had the highest rate of price increases, although at a slower pace than previous quarters [2] - Commercial auto insurance maintained double-digit price growth, remaining one of the fastest-rising lines, while small and mid-market accounts experienced more modest increases compared to prior periods [2] Market Analysis - The current pricing environment indicates a period of more measured pricing across the market, with some coverage lines experiencing modest increases and others remaining flat [3] - The CLIPS survey provides a retrospective look at historical changes in Commercial Property & Casualty insurance prices and claims cost inflation, with a forward-looking analysis available in WTW's Insurance Marketplace Realities series [3] Survey Details - The CLIPS data is based on new and renewal business figures from carriers underwriting the business, with 41 participating insurers representing approximately 20% of the U.S. commercial insurance market [5] - The survey compares prices charged on policies written during Q3 2025 with those from the same quarter in 2024, providing a year-over-year perspective on pricing trends [5]