Commercial P/C pricing increases moderated in Q2, rising 2.8%: MarketScout

Personal lines see average 4.6% increase, with high-value homes seeing steeper jumps

By Erin Ayers, Front Page News

Commercial property/casualty insurance prices rose an average 2.8% in the second quarter of 2025, with increases in nearly all lines but most moderated from Q1’s average 3% uptick, according to the latest Market Barometer from MarketScout.

“Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter,” said Richard Kerr, CEO of Novatae Risk Group, which owns MarketScout. “We are also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”

Commercial auto continued to lead the field with a 6.7% average increase, followed by umbrella/excess liability at 5% - a drop from Q1’s 6.7% rise. General liability inched up to a 3.7% increase from a 2.3% in Q1. Commercial property held steady with a 3.6% average increase.

Other lines hovered around the 1% increase range, including cyber, professional liability, and fiduciary/surety at 1%. Cyber fell from a 1.7% increase in Q1.

Directors and officers liability (D&O) showed an marginal upward trend with an average 1.3% increase, up from 1% in Q1.

Workers compensation pricing held flat in Q2, as did employment practices liability (EPL).

Small accounts saw an average increase of 3.7%, leading other sizes of business but only by a slight margin. Medium-sized accounts experienced a 3.3% increase, while large and jumbo accounts came in at 3%. By industry, transportation accounts saw an average increase of 6.3%, well above other sector average increases that all fell below 3.3%.

Personal lines market

Average increases for private passenger auto and homeowners insurance outpaced those in the commercial lines segment, rising an average of 4.6% in Q2.

Personal auto rates jumped an average 5.7%, up from 4.3%, while homeowners saw a mixed experience. Most homeowners had smaller increases in Q2 compared to Q1, coming in at 3.3%, according to the report. However, high-value homes (those worth more than $1 million) saw a notable increase of 6.7% on average.

“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” said Kerr. “Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favorable during those months.”

Managing Editor Erin Ayers can be reached at erin.ayers@zywave.com.