Commercial insurance rates across the U.S. rose 2.8% in the second quarter of 2025, marking a slight slowdown from the 3% increase seen in Q1, according to a report by Novatae Risk Group. While overall growth moderated, specific sectors like commercial auto and umbrella liability continued to face significant pressure.
Key Trends by Coverage Type
Commercial auto insurance saw the largest rate hike at 6.7%, though this was down from even steeper increases in prior quarters. Umbrella and excess liability coverage rose 5%, while general liability and commercial property insurance climbed 3.7% and 3.6%, respectively.
Richard Kerr, CEO of Novatae Risk Group, noted, “Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter. We’re also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers”.
Other lines showed more modest growth: business interruption insurance rose 2.3%, business owners’ policies increased 2.6%, and professional liability and cyber liability each climbed 1%. Workers’ compensation and employment practices liability insurance remained flat.
Variations by Account Size
Small accounts (up to $25,000) faced the highest rate increases at 3.7%, while medium accounts ($25,001–$250,000) saw a 3.3% rise. Large ($250,001–$1 million) and jumbo accounts (over $1 million) both experienced 3% hikes, reflecting insurers’ cautious approach to risk across business sizes.
Industry-Specific Impacts
The transportation sector led all industries with a 6.3% rate increase, driven by rising costs for vehicle repairs, driver liability, and supply chain disruptions. Energy (3.3%) and habitational coverage (3%) followed, while manufacturing (2.7%) and service industries (2.3%) saw more gradual growth. Contracting rose 2%, and public entity coverage had the smallest increase at 1.7%.
Market Context and Future Outlook
The report, compiled through the Risk & Insurance Alliance, highlights ongoing market volatility due to climate-related risks, social inflation, and supply chain pressures. MarketScout, a division of Novatae, has tracked commercial insurance trends since 2000, providing brokers and underwriters with critical insights to navigate shifting conditions.
While Q2’s moderation offers some relief, experts caution that insurers remain cautious amid uncertain economic conditions and potential weather-related disasters. Kerr emphasized the need for businesses to reassess coverage strategies, particularly in high-risk sectors like transportation and energy.
With commercial auto and liability lines still outpacing broader market growth, the report underscores the importance of proactive risk management for businesses of all sizes.
Related topics：
Berlin InsurTech Feather Launches Digital Business Insurance for Global Teams
Kyobo Life Launches ‘Value Business Life Insurance’ with Growing Coverage
Markel Group Acquires MECO to Expand Marine Insurance Business
