Commercial insurance rates across the US continued to rise in the first quarter of 2025, with the composite rate increasing to 3%, according to a recent analysis by MarketScout.
Richard Kerr, CEO of Novatae Risk Group, observed, “Umbrella and excess liability, along with automobile coverages, saw the most significant rate hikes this quarter—both increasing by 6.7%.”
Transportation companies faced the highest increases among industry sectors, with premiums climbing 6%, reflecting ongoing underwriting concerns and market pressures.
MarketScout provided a breakdown of Q1’25 rates by coverage, cyber liability, industry class, and account size. Commercial Property and Business Interruption rose 3.6%, BOP increased 3%, Inland Marine was up 1.67%, General Liability rose 2.3%, and both Umbrella/Excess and Commercial Auto climbed 6.7%. Professional Liability, Crime, and Surety increased 1.3%, while D&O Liability, EPLI, and Fiduciary rose 1%. Workers’ Compensation remained flat at 0%.
Personal insurance rates also continued their upward trend, with the composite rate rising to 4.9%, up from 4% in Q4’24.
MarketScout highlighted that homeowners insurance led the surge, particularly for high-value properties. Policies for homes valued over $1 million rose 7.3%, while those under $1 million increased 4%, up from 3.3% in the previous quarter.
Kerr added, “Homeowners insurance saw notable increases in Q1 — likely due to the lingering impact of recent California wildfires.
“It often takes time for the market to respond to catastrophic events. Rates are now trending upward and could rise further as we head into hurricane season.”
Personal articles and fine art insurance also saw sharp increases, with rates jumping from 2.3% to 4.3% over the quarter.
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