In the second quarter of 2025, renewal rates for most major commercial insurance lines went up compared to last year, but they slipped a bit from the first quarter of 2025. This is according to the latest Ivans Index report, which tracks premium trends for insurance carriers, agents, and managing general agents.
The Chicago-based company behind the Ivans Index shared that commercial auto, commercial property, businessowners policies (BOP), and umbrella insurance all saw smaller increases in renewal rates during the second quarter. Meanwhile, workers’ compensation is the only major line where rates continued to drop, falling even more sharply than in the previous quarter. General liability insurance stood out as the only line where premium renewals rose more in Q2 than in Q1, increasing by about 4.7%, up from nearly 4%.
Looking at the numbers, commercial auto insurance premiums grew by roughly 8.4% in Q2, down from around 9.2% earlier in the year. Commercial property rates increased close to 8%, a bit lower than the 8.6% rise in the first quarter. BOP policies saw a 7.9% boost in renewals versus 8.6% in Q1, and umbrella policies went up about 9.1%, slightly less than the 9.3% gain documented three months prior. For comparison, premiums were about 10.85% higher in the second quarter of 2024.
Kathy Hrach, senior vice president of product management at Ivans, noted that these changes reflect a slow easing of the market after several years of tough conditions. Most commercial lines are seeing smaller bumps in renewal costs, signaling a softer pricing environment.
Overall, the data shows that while insurance prices are still generally going up year over year, the pace is slowing down across most commercial lines. Businesses can expect renewal rates to rise, but not as sharply as in earlier quarters. The ongoing drop in workers’ compensation premiums may offer some relief in that area, but for most other lines, steady increases continue to be the norm.