Improving Insurance Market Outlook for Buyers: Risk Strategies

Commercial insurance buyers are in for some positive changes as they navigate 2025, according to senior executives at Risk Strategies Co. brokerage. While average rates are holding steady, there are some noteworthy shifts in different lines of insurance. Directors and officers liability and cyber liability rates are on the decline, but auto liability buyers may still see significant increases.
John Mina, Risk Strategies’ CEO, shared in an interview about their recent “State of the Insurance Market” report that clients are starting to see improvements in the insurance landscape. The report mentions that more insurers are entering or re-entering challenging sectors, providing buyers with more choices. Insurers are also warming up to discussing expanded coverage options.
After years of a tough market, insurance rates have reached a level that is catching the interest of insurers. Mark Manzi, national brokerage leader at Risk Strategies, noted that insurers are now more willing to remove policy sublimits and offer multiyear deals as the market stabilizes.
In terms of property insurance, the market saw stabilization in 2024 after a couple of profitable years for insurers and improvements in the reinsurance market. Risks with minimal catastrophe exposures and low losses can expect rates to vary from a 5% decrease to a 5% increase in 2025. Conversely, risks with higher catastrophe exposure or poor loss records could face increases of 15% or more.
While most casualty rates are on the rise, there is strong competition when it comes to new business. Policyholders should prepare for significant rate hikes in auto liability and umbrella coverage. However, the report mentions that general liability increases are slowing down, and workers’ compensation rates remain steady.
Looking ahead to 2025, umbrella rates are expected to increase by 5% to 35%, auto rates by 5% to 25%, general liability by 4% to 10%, and workers’ comp to either remain flat or go up by 5%, as per the report.
The management liability market remains soft overall, although some high-risk companies are experiencing rate hikes. Class action lawsuits went up in 2024 for companies in various sectors like financial services, real estate, communications, healthcare, telecommunications, and technology.
For private companies, primary management liability coverage, including D&O, should see decreases ranging from 5% to 15%, while excess coverage could see decreases of 10% to 30%. Public companies, on the other hand, might witness decreases of 10% to flat for primary coverage and 10% to 30% for excess.
Cyber liability rates are anticipated to drop, with companies having the most advanced security controls enjoying the largest rate reductions. Businesses with strong controls might benefit from 5% to 10% rate cuts, while those with layered cyber controls could see even bigger drops of around 20%.
Despite these improvements, cyber liability remains an area where many companies, especially smaller ones, are still not purchasing coverage, according to Mr. Mina. He mentioned that as much as 60% of clients, spanning all sizes, are foregoing cyber liability coverage.