Discover MarketScout’s insights on a 3% increase in US commercial insurance rates for Q1, highlighting key trends and market dynamics.
The landscape of commercial insurance in the United States experienced notable changes in the first quarter of 2025, with a composite rate hike of 3%, according to a comprehensive analysis by MarketScout. Richard Kerr, the CEO of Novatae Risk Group, commented, “The most substantial rate hikes were observed in umbrella and excess liability, alongside automobile coverages, each escalating by 6.7%.”
Among various industry sectors, transportation companies bore the brunt of these increases, witnessing a 6% rise in premiums. This surge reflects ongoing concerns in underwriting and market dynamics.
MarketScout’s detailed report outlined the rate changes for Q1 2025 by coverage type, cyber liability, industry classification, and account size. Key highlights include:
Personal insurance rates mirrored the upward trend, with the composite rate climbing to 4.9%, compared to 4% in the previous quarter (Q4 2024). MarketScout noted that homeowners’ insurance spearheaded this surge, particularly in high-value properties. Policies for homes valued over $1 million increased by 7.3%, while those under $1 million saw a rise of 4%, up from a 3.3% increase in the prior quarter.
Kerr further elaborated, “The considerable hikes in homeowners insurance during Q1 can be attributed to the lasting impact of recent California wildfires. The insurance market often takes time to adjust following catastrophic events. As we approach hurricane season, rates could potentially ascend even further.”
Additionally, personal articles and fine art insurance experienced a pronounced increase, with rates escalating from 2.3% to 4.3% throughout the quarter.
Yorum Yap