18 Aug State of the Insurance Market – Q2 2025

Staying informed about the latest trends and demands of the Commercial Business Insurance Industry is essential. Here’s a summary of the current state of the insurance market for Q2 2025:

Commercial Property premiums are a continued challenge. Ensuring your business is adequately insured is key. 

Premiums across all account sizes rose for the 30th consecutive quarter, averaging a 3.7% increase, although lower than the previous quarter’s increase of 4.2%. Premiums for large accounts went up by 2.9%, which is mush less than the previous quarter, about 45% lower. Meanwhile, small and medium accounts saw their premiums rise a little more than last quarter, at 4.2% and 4.0%. 

Notable Lines of Business and Their Premium Trends

Umbrella Insurance: Umbrella insurance saw the highest increase in premium at 11.5%. These policies offer critical excess liability protection, and the increased severity of claims is contributing to growing demand and cost. 

Commercial Auto: Commercial auto saw an increase of around 8.8%. This marks the 54th consecutive quarter of rising premiums in this line. Driver shortages, rising repair costs, and lingering supply chain disruptions have all contributed to more frequent and severe claims. For more details on contributing factors, see additional information from Travelers here.

Respondents also identified third-party litigation funding as a significant factor contributing to the increase in both lines of business. 

Premiums Decreasing in Other Lines

Similarly to last quarter, the five lines that saw a decrease in premiums were cyber, D&O, employment practices, terrorism, and workers’ compensation. Several respondents noted that these premium reductions may help offset sharp increases seen in umbrella insurance and other lines that rose. 

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