Personal Insurance Rates Continue to Climb in Q1 2025
April 4, 2025
Commercial Insurance Rates Plus 3% in Q1 2025
AUTO AND UMBRELLA COVERAGES CONTINUE TO ENDURE HIGHER RATE INCREASES
Commercial insurance rates across the United States continued their upward trend in the first quarter of 2025, with the composite rate increasing to 3%.
“Umbrella and excess liability, along with automobile coverages, saw the most significant rate hikes this quarter—both increasing by 6.7%,” said Richard Kerr, CEO of Novatae Risk Group.
Among industry sectors, transportation companies faced the highest increases, with premiums rising by 6%, reflecting ongoing underwriting concerns and market pressures in that space.
This data is part of an ongoing analysis conducted by the Risk & Insurance Alliance, providing market intelligence and benchmarking for brokers, underwriters, and risk managers navigating a dynamic insurance landscape.
A summary of the first quarter 2025 rates by coverage, cyber liability, industry class and account size is set forth below.
| By Coverage Class | |
| Commercial Property | Up 3.6% |
| Business Interruption | Up 3.6% |
| BOP | Up 3% |
| Inland Marine | Up 1.67% |
| General Liability | Up 2.3% |
| Umbrella/Excess | Up 6.7% |
| Commercial Auto | Up 6.7% |
| Workers’ Compensation | Flat 0% |
| Professional Liability | Up 1.3% |
| D&O Liability | Up 1% |
| EPLI | Up 1% |
| Fiduciary | Up 1% |
| Crime | Up 1.3% |
| Surety | Up 1.3% |
| Cyber Liability | |
| Cyber | Up 1.7% |
| By Account Size | |
| Small Accounts - Up to $25,000 | Up 4.7% |
| Medium Accounts - $25,001 – $250,000 | Up 3.7% |
| Large Accounts - $250,001 – $1 million | Up 3% |
| Jumbo Accounts - Over $1 million | Up 2.3% |
| By Industry Class | |
| Manufacturing | Up 3% |
| Contracting | Up 2.7% |
| Service | Up 3% |
| Habitational | Up 4.7% |
| Public Entity | Up 1.7% |
| Transportation | Up 6% |
| Energy | Up 2.3% |
For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@marketscout.com.
About MarketScout, a Division of Novatae Risk Group
Founded in 2000, MarketScout, a Division of Novatae Risk Group, is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd’s Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. MarketScout’s company culture and sense of community encourages growth, learning and collaboration. The company has been named as one of the Best Places to Work in Insurance by Business Insurance for ten consecutive years. In November 2022, MarketScout joined Novatae Risk Group and Richard Kerr was named the combined companies’ CEO. California license #0D60423.