Alera Group’s 2025 Property and Casualty Market Update

Alera Group’s 2025 Property and Casualty Market Update, building on insights from its annual December Market Outlook and real-time industry data, highlights continued stabilization in the U.S. insurance market and signs of softening following several years of significant rate increases.

The new report — designed as a bridge between Alera Group’s annual Market Outlooks — provides insight into pricing, coverage availability, market capacity and underwriting trends for the balance of 2025. 

CLICK HERE to download the 2025 Property and Casualty Market Update. 

This year's key findings include:

• Greater stability: Insurers are successfully adjusting pricing to address increased claims costs and maintain profitability. Strong premium growth, easing inflation, disciplined underwriting and higher investment yields are contributing to healthier results, with the industry projected to deliver a 10% ROI this year.
• Moderating increases: After years of sharp price hikes, rate increases are easing in many areas, though actual account results will still vary by industry, location and risk profile. According to the Council of Insurance Agents & Brokers’ Q1 2025 Commercial Property/Casualty Market Index, premiums across all account sizes rose by an average of 4.2%, down from a 5.4% increase in Q4 2024 — a 22% decrease.
• Adequate capacity: Availability and capacity remain sufficient across most lines of business. The Commercial Property Insurance market, in particular, is more buyer-friendly than it has been in years, with competition driving favorable terms for desirable accounts.
• Continued challenges: Lines of insurance such as Commercial Auto Liability, Umbrella/Excess and Medical Malpractice continue to produce poor returns due to factors like rising loss severity, social inflation and the lack of tort reform in many states. Property Insurance remains challenging in regions vulnerable to severe weather and climate-related risks.
• Cautious underwriting: Carriers remain focused on balancing growth with disciplined underwriting. Buyers can expect thorough risk assessments and information requests as underwriters continue to refine their appetite and pricing strategies.

The Alera Group report provides a detailed look at conditions across key lines of business, including Commercial Auto, Commercial Property, Cyber Liability, Directors and Officers, Employment Practices, Environmental, General Liability, Medical Malpractice, personal insurance, Professional Liability, Surety, Umbrella/Excess Liability, and Workers’ Compensation.

Don't forget to CLICK HERE to download the 2025 Property and Casualty Market Update!