Despite macroeconomic headwinds, strategic buying opportunities are in-play
Capacity is operating at a surplus in most lines of commercial insurance
NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- According to the latest Insurance Marketplace Realities report from Willis, a WTW business (Nasdaq: WTW), the current market environment offers opportunities for well-prepared buyers to secure favorable terms, broaden coverage options, and to re-engage in strategic risk transfer decisions that may have been a bit constrained in recent years. While this points to a buyers’ market, there are meaningful macroeconomic headwinds including renewed supply chain challenges, unpredictable tariffs, volatile financial markets, and social inflation.
With policyholder surplus in the U.S. exceeding $1 trillion and global reinsurance capital surpassing $700 billion, the commercial insurance market is operating from a position of historic financial strength. Insurance carriers are pursuing growth strategies on the belief that rate adequacy has largely stabilized, prompting broader underwriting appetites and more competitive pricing.
“Buyers are finding more negotiating power and flexibility in today’s market,” said Jon Drummond, Head of Broking North America at Willis. “It’s a moment to reassess strategies, re-engage in broader risk financing strategies, and secure the coverage depth, or other program enhancements, that may have been limited during the hard market cycle.”
A standout in this evolving landscape is the increased capacity – even constrained sectors like excess casualty have recently seen a modest introduction of new capacity. New market entrants and innovative solutions like Willis’ ‘Gemini auto-follow facility’ are providing significant options for buyers to build effective programs and mitigate emerging risks.
WTW’s latest Marketplace Realities Report also features expert insights from Sam Harrison, Chief Underwriting Officer at Canopius, in a "View from the Top", and also debuts a new policy wordings segment: “The Power of Clarity – Tariffs and Property Coverage,” where Helen Campbell, Head of Property Wordings for North America, explores critical clauses affected by tariff-related risks.
Willis is bullish on market opportunities stemming from ample capital, growing capacity, and renewed competition, and believes that this signals a healthy buyer’s market in 2025. Well-prepared buyers who clearly communicate risks, while leveraging strong brokerage relationships, are best positioned to benefit from the current market.
| Key Price Predictions for 2025 | |
| Property | |
| CAT-exposed | -10% to +10% |
| Non-CAT exposed | -5% to +5% |
| Domestic casualty | |
| General liability | +2% to +8% |
| Umbrella (high hazard) | +10% to +15% |
| Umbrella (low hazard) | +7.5% to +12.5% |
| Excess (high hazard) | +7.5% to +15% |
| Excess (low hazard) | +5% to +12% |
| Workers’ compensation | –5% to +2% |
| Auto | +10% to +20% |
| International | Flat |
| Executive risks | |
| Directors’ and officers’ public company (primary) | -3% to Flat |
| Directors’ and officers’ private / not-for-profit (overall) | -10% to Flat |
| Side A / DIC | -3% to Flat |
| Errors and omissions (large law firms) | +2% to +8% |
| Employment practices liability (primary) | Flat to +5% |
| Fiduciary (financial institutions) | -5% to + 5% |
| Cyber | |
| Cyber | -5% to +5% |
| Political risk* | |
| Low to Moderate Hazard Risks | Flat to + 20% |
| Terrorism and political violence | |
| Terrorism and sabotage | -10% to -2.5% |
| Political violence | -5% to +5% |
| * China-related political risk rates at 50%+ | |
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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