State of the Insurance Market:
2025 Outlook

Return to in-office work policies can lead to employment practices liability (EPL) claims. Ensure adequate coverage is in place before acting. An area to watch is proximity bias. Proximity bias is the better treatment of physically closer (i.e., in-office) workers than those who are remote.

Use follow-form policies and clearly document claims administration protocols when securing support and excess professional liability coverage.

Purchase extended reporting periods — or tail coverage — to cover the acquired firm’s prior acts of liability when acquiring smaller firms through “assets only” acquisitions.

Maintain open and transparent communication with underwriters. Address any concerns or inquiries promptly. A collaborative relationship helps underwriters understand your risk management policies and procedures and could result in more favorable renewal terms.

Submit a detailed renewal letter instead of, or in addition to, a standardized application in your underwriting submission. Provide a comprehensive overview of business operations and claims history. Offer details on risk management, including updated policies and procedures including AI, IT improvements, claims prevention, and risk mitigation.

Hold in-person meetings with underwriters for large and mid-sized firms. An insurer stopped writing the class in 2024 and some have predicted at least one to exit in 2025. Meet with current and prospective insurers.

Consider including managing general underwriters (MGUs) in insurance programs to secure additional insurance capacity. MGUs provide access to new capacity via specialized and experienced underwriting.

Firms not requiring Bermudian capacity should consider additional LPL limits as domestic excess layer premiums remain competitive.