In 2025, the U.S. and global commercial insurance market presents a landscape of both opportunities and challenges for buyers:

Opportunities

• Market Softening and Increased Competition:
  Commercial insurance rates declined by 3% globally in Q1 2025, marking the third consecutive quarter of decreases after years of increases. This softening is driven by robust capital inflows, expanding insurer capacity, and heightened competition among carriers, particularly in property, cyber, and management liability lines. Buyers are benefiting from improved terms, broader coverage options, and greater negotiating leverage159.

• Favorable Conditions for Well-Prepared Buyers:
  Accounts with favorable loss histories, strong risk mitigation, and low catastrophe exposure are seeing the most competitive terms. Insurers are more willing to offer flexible coverage and pricing to attract and retain desirable risks. This environment allows buyers to revisit and enhance their risk transfer strategies, secure better program structures, and potentially increase limits without significant cost increases123.

• Innovation and Alternative Risk Solutions:
  The abundance of capital is fueling innovation, including alternative risk transfer programs (such as captives and parametric solutions), which can provide more tailored coverage and cost stability for sophisticated buyers1.

Challenges

• Volatility for Catastrophe-Exposed and High-Claim Accounts:
  Despite overall market softening, volatility persists for property accounts exposed to natural catastrophes (wind, hail, wildfire) and those with adverse claims histories. These risks face more selective underwriting, potential rate increases, and stricter terms. Rate changes for such portfolios can range from -10% to +10%, while benign risks may see -5% to +5% changes23.

• Casualty Market Pressures:
  The casualty sector, especially in the U.S., continues to face upward rate pressure due to social inflation, large jury verdicts, and increased litigation. Buyers in these lines may encounter rate stability or modest increases, along with heightened scrutiny of risk quality and claims history135.

• Emerging and Evolving Risks:
  Cyber risk remains a top concern, with attacks growing in frequency and sophistication. Insurers are refining pricing and coverage strategies to address these exposures, and buyers must ensure adequate limits and robust risk management. Additionally, global risk turbulence—including geopolitical instability and supply chain disruptions—demands strong risk management and financing strategies14.

• Underwriting Discipline and Information Requirements:
  While competition is strong, insurers remain disciplined in underwriting, especially for complex or higher-hazard risks. Buyers need to provide comprehensive, high-quality underwriting information and demonstrate active risk control measures to achieve the best outcomes23.

Summary Table: 2025 Commercial Insurance Buyer Landscape

In summary:
2025 is a buyer-friendly market for most commercial insurance lines, offering opportunities for cost savings and program enhancements—especially for well-managed risks. However, buyers with catastrophe exposure or adverse claims histories face ongoing challenges. Proactive risk management, robust underwriting submissions, and exploring innovative risk transfer options are key to maximizing opportunities in this evolving landscape