Q2 Insurance Market Update
Noah Jankowski
Account Executive, Commercial Insurance at Alera Group | Delivering Tailored Risk Management Solutions
The commercial insurance landscape is finding its footing in 2025 after years of volatility. Alera Group’s Q2 Property & Casualty Market Update outlines important developments across coverage lines, and what they mean for businesses navigating renewals and risk planning.
1. Market Conditions Are Stabilizing
After sustained premium hikes, the market is finally showing signs of softening. The average Q1 2025 commercial rate increase was 4.2%, down significantly from late 2024. Strong investment returns, easing inflation, and better underwriting discipline are helping insurers return to profitability.
2. Capacity Is Generally Adequate
Coverage availability is strong across most lines, with increased competition in areas like Cyber Liability, Directors & Officers, and Workers’ Comp. However, businesses in catastrophe-prone regions or with complex risk profiles may still face limited options or higher premiums.
3. Underwriting Is Cautious but Flexible
Underwriters are data-driven and selective. Businesses that proactively manage risk and provide detailed documentation can expect more favorable terms. While the bar is high, there is growing flexibility for accounts that align well with carrier appetites.
4. Some Lines Remain Under Pressure
Commercial Auto, Umbrella/Excess Liability, and Personal Insurance (especially Homeowners in high-risk areas) remain challenging. These lines are burdened by escalating claims severity, legal system pressures, and climate-related exposures, keeping rates high and terms tight.
5. Geography and Litigation Trends Matter More Than Ever
Where you operate, and how you manage compliance and emerging risks, can heavily influence your coverage terms. Legal climate, weather exposure, and regulatory scrutiny (like biometric or AI risks) are top concerns for underwriters in 2025.
Final Thoughts
The 2025 insurance market isn’t easy, but it’s evolving in a way that rewards proactive risk management and strategic partnerships. For businesses that stay ahead of underwriting expectations and prioritize transparency, there’s real opportunity to stabilize coverage and costs.
Our team is available to meet to discuss your renewal and risk management strategy to further transfer risk and control program spend. Reach out today to schedule a meeting.
As always, stay covered.
Email: Noah.Jankowski@aleragroup.com