The commercial insurance market continues to shift as we approach the end of 2025. In Q2, average premiums increased by 3.7% across account sizes, marking the 31st consecutive quarter of upward movement. While some lines are stabilizing or softening, others remain under pressure due to litigation trends, economic factors and emerging risks. Businesses must stay informed and proactive to secure favorable terms and manage evolving exposures effectively. Explore what’s shaping insurance decisions and outcomes for your organization.

➡️ Download the full Fall 2025 Commercial State of the Market Report.

To view trends from earlier this year and evaluate how market strategies may have evolved, check out our Spring 2025 State of the Market Report.

 

Commercial Property

The Commercial Property market is entering a more favorable phase after a prolonged period of hardening. While carriers continue to apply rate increases, the pace has slowed significantly. Average premium increases dropped to 1.9% in Q2 2025, representing a nearly 70% decrease from Q2 2024.

This softening is largely attributed to increased reinsurance capital and expanded capacity, which have helped stabilize the market. Builders Risk coverage continues to be impacted by inflation concerns tied to tariffs on imported construction materials, which could drive up repair and replacement costs. Despite active wildfire and storm seasons, most losses have been concentrated in the Personal Insurance market, and the anticipated hurricane season has been milder than expected. These factors have contributed to a more stable outlook for Commercial Property heading into 2026.

Umbrella/Excess Liability

The Umbrella and Excess Liability market remains one of the most challenging areas for insureds in 2025. Leading all lines in premium increases for Q2, Umbrella coverage rose by an average of 11.5%, driven by ongoing litigation trends and a surge in nuclear and thermonuclear verdicts.

The market continues to grapple with social inflation, aggressive legal strategies and third-party litigation funding, all of which are contributing to higher claim severity and frequency. Capacity constraints are also becoming more pronounced with carriers tightening their underwriting standards. Insurers are prioritizing accounts with strong risk management practices and exploring innovative program structures to maintain profitability.

Industry Spotlights

• Education: Liability lines remain hard, driven by social inflation, litigation financing and rising mental health-related claims. Cyber coverage is beginning to firm, though strategic remarketing can still yield favorable outcomes.
• Healthcare: Healthcare organizations continue to face a complex risk landscape shaped by staffing shortages, litigation trends and financial pressures. Underwriting strategies are evolving in response.
• Mergers & Acquisitions: Deal activity is gaining momentum, fueled by strategic buyers and global private equity. While economic uncertainty lingers, available capital suggests potential for increased transactions ahead.
• Real Estate: Property placements are softening, but liability remains challenged due to social inflation, nuclear verdicts and litigation funding. Underwriting discipline and proactive risk management are critical.

Reach Out to an Advisor

In today’s shifting insurance landscape, staying ahead of market trends and emerging risks is more important than ever. Whether you’re evaluating coverage options, preparing for renewals or navigating complex exposures, Unison Risk Advisors is here to support your strategy. Our team brings deep industry insight and a proactive approach to help you make confident, informed decisions that protect your organization and position it for long-term success.