By Chad Hemenway

According to The Council of Insurance Agents & Brokers (CIAB) quarterly survey, commercial property/casualty premiums across all account sizes in the first quarter of 2025 rose by 4.2%–down 22% from the last three months of 2024 and a “clear” signal of soft market conditions.

Though the first three months of 2025 marked the 30th straight quarter of increases across all account sizes, medium-sized accounts slowed significantly, with an average Q1 increase of 3.6%. This was down from an average increase of 6.4% just a quarter ago.

Responses from the CIAB quarterly survey indicated more carriers participating in the middle market. Competition typically pushes premiums down. Respondents said there was “more flexibility from underwriters to make accounts fit,” and that there “seemed to be more competition and carriers willing to renew flat to a moderate increase, if a ‘good risk.’”

By line of business, cyber led all others with a reported Q1 premium decrease of 2.1%. D&O liability premiums were down 1.7%, and employment practices liability was down 0.4%, according to the survey.

Commercial auto led all lines with an average premium increase of 10.4% in Q1 2025, up from 8.9% the previous quarter. Increases for commercial property slowed to just 2.9% in Q1, a more than 50% decrease from Q4 2024’s 6% increase. Competition was again cited as a reason for the more buyer-friendly conditions.

Average premiums for umbrella continued an upward trend over the last year-plus, up 9.5% compared to increases of 8.7%, 8.6%, and 7.2% the prior three quarters. Within its survey report, CIAB highlighted the impact of third-party litigation funding. Respondents said TPLF is affecting claims counts as well as premiums and coverage availability.

According to one respondent: “Nuclear verdicts increased, driving liability and excess rates. It affected the entire litigation and claims system. We are seeing awards that exhaust all tiers of limits.”

Topics
Commercial Lines
Property Casualty