17 Nov State of the Insurance Market – Q3 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 Q3 2025:
Commercial Property premiums are a continued challenge. Ensuring your business is adequately insured is key.
Premiums across all account sizes rose by an average of 1.6%, down from 3.7% in Q2. Premiums for each account size increased by less than 2%; small account premiums increased the least, at an average of 1.2%.
Notable Lines of Business and Their Premium Trends
The average premium across key lines—commercial auto, commercial property, general liability, umbrella, and workers’ compensation—rose by 2.7% in Q3, representing a 45% drop from last quarter’s 4.9% increase.
Commercial Auto: Commercial auto saw an increase of around 7.7%, although this is less than the increase seen last quarter, of 8.8%. 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.
Commercial Property: Commercial property premiums fell by -0.2% on average in Q3. This is the first decrease in property premiums since Q2 of 2017, facing more than 100% decrease from the previous quarter. The main contributing factor to this lines trend is due to an excess of underwriting capacity.
Cyber: Cyber premiums fell by 2.6% on average in Q3. This premium decrease is the largest decrease that can be seen out of all lines. Similarly to commercial property, the main contributing factor to this lines trend is due to an excess of underwriting capacity. There has been a large increase in demand for this coverage.
Premiums Decreasing in Other Lines
All lines of business experienced a premium increase flat to or lower than the previous quarter’s increases. Similarly to last quarter, the five lines showing decreases in premiums were cyber, D&O, employment practices, terrorism, and workers’ compensation. A new addition is business interruption, which also saw a decrease in Q3. Survey respondents suggest that a high capacity and demand-driver competition for business can be a causing factor to these premium changes.
It’s no secret that navigating the insurance market has become increasingly challenging. Now more than ever, it’s crucial to understand the factors affecting your premiums. At Gilbert’s, we’re committed to ensuring every client has what they need to succeed, even when the conversations are tough.
To discuss your options or learn more, contact one of our talented Risk Advisors today!
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