State of the Insurance Market Report

2025 Outlook

Published April 2025

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Explore emerging risks, market trends, and strategic insights.

Risk Strategies specialists in our industry and insurance product lines have collaborated to deliver the expertise and perspectives essential for addressing both the complexities and opportunities presented by the current market landscape.

State of the Insurance Market Report

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Executive
Summary

Get expert insight into the trends shaping today’s insurance market.
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Industries

See how industry-specific risks and trends could impact your business.
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Business
Solutions

Discover strategic insights to help protect and grow your organization.
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Employee
Benefits

Understand what’s ahead for benefit costs, coverage, and compliance.
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Private
Client
Services

Navigate the complexities of personal insurance in a changing risk landscape.
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Executive Summary

 

After years of rising rates, the market appears to be stabilizing in many areas such as property, cyber, and management liability. However, casualty and homeowners remains in an unstable “hard market". In addition, rising pharmacy costs continue to impact the employee benefits landscape.

The shift in the insurance industry marks a dynamic period of change, with opportunities for innovation and growth despite its inherent complexities and systemic risks. By staying agile, data-driven, and proactive, you can strengthen your business resilience and confidently navigate an uncertain, rapidly evolving risk environment.

Market Challenges

  • Natural Disasters: Increasingly severe and frequent climate-related events, such as wildfires, hurricanes, and floods, continue to present a critical challenge. The Los Angeles wildfires highlight the immediate and long-term implications for property insurers.
  • Social Inflation: Escalating claim costs associated with nuclear verdicts and rising litigation expenses and funding weigh heavily on casualty and liability lines, further exacerbating claims severity.
  • Emerging Risks: Technologies like artificial intelligence (AI) introduce vulnerabilities and threats, while geopolitical tensions amplify uncertainties for global insurers.
  • Regional Variations: While U.S. rates remain flat overall, property lines show mixed trends, with rate relief for some but higher premiums for catastrophe-prone areas.

Recommendations

Checkmark-2024-SOTM

Acknowledge the complexities of systemic risk: Recognize that numerous factors influence risk, both internal and external, seen and hidden, which evolve over time. A thorough understanding of these elements is critical to crafting effective strategies for risk mitigation.

Checkmark-2024-SOTM

Integrate insurance into strategic planning: Approach insurance as a fundamental component of the overarching business strategy rather than a routine policy renewal. Viewing it through this lens enables businesses to proactively address potential vulnerabilities and align coverage with broader organizational goals.

Checkmark-2024-SOTM

Align coverage with your long-term vision: Evaluate a broad spectrum of insurance options to identify the strategies that best support your business objectives. By aligning these choices with your vision, companies can make informed, resilient decisions that ensure longevity and adaptability.

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Partner with an expert insurance broker: Engage with a specialized insurance broker who has deep expertise in the business industry and a thorough understanding of the unique risks. Choosing the right partner secures protection for what matters most and enhances an organization’s assets and stability.

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Industries

Insurance experts in our industry specialty practices work with our clients and are in the market placing insurance coverage every day. Review their outlook for your industry.

Business Solutions

The experts that support key business product lines across our organization are in the market placing insurance coverage every day. Take a look at their observations on the insurance landscape.

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Browse other areas within our State of the Insurance Market Report.

The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.