Insurance Rates — Two Reports

S&P Market Intelligence said the 3rd quarter of 2025 is the best quarter property and casualty insurers have had in 25 years. Analysts Tim Zawacki and Husain Riuawala said the 89.1 combined ratio was lower than anyone has seen in 98 quarters.

A fairly disaster-free quarter and the homeowners and auto lines doing well are said to be the reason.

You have to go back to the start of 2001 to see anything like the 89.1. The closest we’ve come to this since 2001 is in the third quarter of 2006 and a 90.7 combined ratio. The first quarter of 2006 had a 91.0.

S&P’s report says it’s going to be a long, long time before we top 2025’s incredible 3rd quarter.

Looking at a different report and at rates, the Council of Insurance Agents and Brokers (CIAB) said the average rate increases for commercial insurance rose 1.6% in the third quarter. That’s down from 3.7% in the second quarter of 2025.

Premium increases for all lines either dropped or were flat. Commercial property rates fell for the first time since 2017. Those rates dropped an average of 0.2%. That compares to a 1.9% rise in the second quarter and a 7.9% average hike in the second quarter of 2025.

Here’s more:

• Large account rate increases hit 1.6% down from 2.9%
• Mid-sized accounts saw a 1.9% rise in prices compared to 4% in quarter 2
• Small account rates rose 1.2% compared to 4.2% last quarter
• Umbrella rates slowed to 5.5% from 11.5% in the second quarter
• Commercial auto rates up 7.4% compared to 8.8% in quarter two
• General liability rates rose 2.8% compared to 3.9%
• Work comp remains basically flat and fell 1.9% to compared to a 1.8% drop in the second quarter
• The largest decrease came in cyber rates which fell 2.6%
• D&O rates fell 2.1%
• Employment practices dropped 0.7%

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