CIAB — A Soft Commercial Market

The Council of Insurance Agents & Brokers (CIAB) says the commercial insurance market is now soft. In fact, the CIAB says this is the softest commercial premiums have been since 2017.

In total, in the 4th quarter of 2025 average premiums in all account sizes were up just 0.2%. That’s down from the 1.6% in the 3rd quarter. Here is a look at the totals over the last four quarters of 2025 and the 4th quarter of 2024.

Also noted are the highest rates since 2001 and the lowest.

4th quarter 2025 average commercial premium increases:

Small: 2.8%

Medium: 0.0%

Large: -2.1%

Average: 0.2%

3rd quarter 2025 average commercial premium increases:

Small: 1.2%

Medium: 1.9%

Large: 1.6%

Average: 1.6%

2nd quarter 2025 average commercial premium increases:

Small: 4.2%

Medium: 4.0%

Large: 2.9%

Average: 3.7%

1st quarter 2025 average commercial premium increases:

Small: 3.6%

Medium: 3.7%

Large: 5.3%

Average: 4.2%

4th quarter 2024 average commercial increases:

Small: 3.6%

Medium: 6.4%

Large: 6.3%

Average: 5.4%

Highest rate hikes in the last couple of decades is in the 4th quarter 2001:

Small: 20.8%

Medium: 31.7%

Large: 33%

Lowest rate hikes in the last two-plus decades:

Small, 1st quarter 2008: -10.0%

Medium, 3rd quarter 2007: -15%

Large, 3rd quarter 2007: -15.9%

The CIAB says what we are seeing is “clear soft market conditions,” and “Signs of softened market conditions were equally evident across lines of business.” Here are the nine lines most impacted:

• Cyber
• Business interruption
• Commercial property
• Construction
• Directors & officers
• Employment practices
• Surety bonds
• Terrorism
• Workers’ compensation

Of all the lines, D&O saw the biggest decreases. They’re down 3.8% for eight consecutive quarters.

Source link: Insurance Journal — https://bit.ly/4rT406c