According to The Council of Insurance Agents & Brokers (CIA
B) quarterly survey, commercial property/casualty premiums across all account sizes in the third quarter 2025 rose by 1.
6%, as premium increases in all lines of business were either flat or low
er than the last quarter when premiums for all accounts increased 3.7%.
“Q3 2025 showed clear soft market conditions across the board,” said CIAB in its report. Lines that saw premium
s decrease in Q3 were business interruption, commercial property, cyber, D&O, employment practices, and workers compensation.
Survey respondents cited aggressive competition in Q3, notably for small business. Multiple respondents hig
hlighted carriers’ appetite for smaller accounts, CIAB reported.
The cost of cyber insurance fell most out of all lines, down an average of 2.6% in Q3. CIAB said 43% of respondents in
dicated an increase in cyber underwriting capacity, with about 25% calling the increase “significant.”
Commercial property premiums decreased for the first time in eight years, down an average of 0.2%. The reason cited most by respondents was an influx of additio
nal capacity, outweighing demand. New carriers and managing general agents have entered the market as well as re
Watch More Image Part 2 >>>
turning carriers that left during hard-market conditions. Also, the co
mmercial property reinsurance market has improved, which has trickled down as a benefit to insureds.
Even the rate of premiums increases for umbrella coverage decreased in Q3, CIAB said the line had seen average in
creases of 11.5% in Q2. In Q3, the increase was an average of 5.5%
. “It’s not yet clear what may be influencing this abrupt reversal in the magnitude of average premium increases for the line,” CIAB added.
Workers’ comp remained profitable in 2024 with a combined ratio of 88.8–the lowest among the major P/C lines
of business–even as net premium written for the industry fell nearly 7%
due to rate decreases
and pricing cuts, says Best’s aptly titled market report, “Workers’ C
ompensation Continues With Strong Profits, Despite Pricing Cuts.”
The picture isn’t expected to change. Midyear results indica
te 2025 will be another profitable year and another year with a decrease in premium in line with more rate decreases.
Christopher Graham, senior industry analyst, Industry Research and Analytics, AM Best, noted that workers’ co
mp underwriting profits over the past decade have been largely
attributable to favorable prior-year loss develment. “While the reserve cushion appears to be shrinking, it is expe
cted to provide benefits to calendar-year profitability in the medium term,” G
raham added.