Article a glance:

• We’ve been experiencing a hard insurance market that is beginning to soften, which means coverage may become broader and preimums could lower
• The market will still have its challenges, due to forces like natural disasters, geopolitical conflicts, the economy, inflation, AI and cyber security
• Shifts in your business, like hybrid work, AI, staff changes and more, can impact your premiums
• Stay a step ahead by having us check your coverage for 2025

Will my business insurance premiums change in 2025?

Chances are, you are on a mission to build your strongest business yet! In doing so, it’s important to strengthen and protect what matters most: your people and your property. Strengthening your business can be easier than you think, especially as we anticipate a softening of the insurance market. A softening means conditions are more favorable toward the buyer – that’s you! Let me break it down quickly… 

Will we have a soft insurance market in 2025?

According to Zywave’s 2025 Commercial Insurance Market Outlook, the insurance market is softening, meaning there’s potential for stable or reduced premiums, broader coverage, higher available limits of liability, and more.

This softening is a shift from a hard market in recent years marked by “…rising claim frequency and severity, social inflation, evolving cyber risks, and continued losses from catastrophic natural disasters—all contributing to a prolonged hard market.”

As you probably experienced as a business owner in recent years, underwriting standards became more strict, and premiums increased, making it harder and pricier to get appropriate coverage. As the market softens, the outlook benefits policyholders, especially those with low-risk profiles. 

Here are some positive things we expect to see (this is true for California, too, as large insurers look to resume serving new policyholders):

• Reinsurance capacity – AKA the number of businesses that can be re-insured – will remain stable and may even increase
• We may be able to offer lower premiums and broader coverage

Where does your business stand in all of this?

Whether you’ve experienced small or large shifts in your business over the past year, checking in on your coverage is smart. Here are shifts (big and small) that can impact your premiums: 

• Remote work and a hybrid workforce
• The size of your workforce 
• Property modifications and property location
• The strength of your risk management process – and your management team – which can lead to fewer claims 
• AI Developments

Lots of shifts to consider, right? Make it easier on yourself by working with us! We will ask the right questions to ensure you have appropriate coverage in 2025. Inquire HERE.

What are the potential insurance market challenges for 2025?

While we are optimistic about the insurance market in 2025, we must acknowledge the challenges, too. These include:

• Recent natural disasters like hurricanes in Florida and wildfires in California caused billions of dollars worth of damage, which has the potential to impact pricing
• Geopolitical conflicts could impact supply chains, which in turn can affect insurance rates 
• The overall economy and state of prolonged inflation
• Growing cyber risks, navigating AI, etc., could challenge the market.

I know we just told you the market could be softening, and then we threw in a wrench. Our goal is to overcommunicate and stay a step ahead on your behalf so you know the opportunities and challenges that lie ahead for your business. After all, you want to build your strongest business yet, right?

Make it easier on yourself by working with us! Get started HERE.

Source: Zywave, 2025 Commercial Insurance Market Outlook