Commercial Insurance — A Buyer’s Market?

The insurance brokerage, Lockton issued a report last week on commercial insurance. Falling rates for many lines has the company believing 2025 is developing into a buyer’s market. This is especially true for the property and financial lines and for specialty coverages.

Lockton says the one, notable exception is liability. Pricing and capacity continue to be a challenge because of social inflation and the high cost of losses. Lockton notes they also remain high because tort reforms just aren’t happening.

Company U.S. market strategy and engagement group leader Vince Gaffigan says tariffs are another issue. His company, and others, are closely watching the effect of them on their operations. Another worry is supply chain issues that almost always lead to higher loss costs and more problems for underwriting and pricing. 

“2025 has been anything but predictable,” Gaffigan said. “From social inflation and tariffs to regulatory shifts, geopolitical tensions, and a highly volatile stock market, the challenges are complex and interconnected.”

He noted directors and officers and cyber liability lines are starting to solidify.

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