Specialize to Succeed

Halfway through 2025, what are some top trends in the admitted commercial insurance market and are these trends contributing to developments in the E&S market? How has the E&S market continued to evolve in 2025?

Generally speaking, we’ve seen pockets of growth in the admitted market space, particularly within the middle market and in lower-hazardous classes of business. We’re continuing to see growth in the E&S space. In casualty, one of the key drivers is carriers offering lower limits than in the past—a response to factors like social inflation and legal system abuse. On the property side, ongoing convective storm activity is leading to more opportunities in the E&S market, as admitted carriers continue to pull back from covering secondary perils. Interestingly, while property rates are softening, you’re still seeing increased submissions and opportunities for E&S carriers. We haven’t seen the admitted market offering large line sizes to gain market share like we have in the past.

The commercial property line faced difficulties from natural catastrophes and inflation in 2023 and 2024—what challenges does it face in 2025?

The main driver of the hard market in 2023 was a significant correction in the reinsurance market after years of unprofitability. Many carriers experienced higher attachment points and rising rates. Over the past two years, we’ve seen more stability in reinsurance which has contributed to a softening in the commercial property space. Despite the softening market, pricing remains fairly adequate overall and there is still room for growth.

Climate risk will continue to challenge the industry. 2025 has already been a very active convective storm year and we just entered wind season, which could impact rates moving into 2026.

How will tariffs impact the commercial property line—and the industry more broadly? How can the industry help insureds prepare for any impact?

The biggest impact of tariffs so far has been uncertainty. Many customers are reassessing their supply chains and replacement costs, but it’s still unclear what the long-term effects will be. Delays and pauses in implementation have made it difficult to predict where things will land. That’s why it’s important to stay close to customers and understand how potential changes could affect their operations—whether it’s business interruption exposure, rising replacement costs, or added pressure on supply chains. As developments unfold, brokers and insurers will need to have deeper, more strategic conversations with their clients.

What opportunities does the insurance industry have when it comes to commercial property? Do insurers need to develop specialized expertise to navigate current trends?

Absolutely. Specialized underwriting and claims expertise are essential— and those two areas need to be closely aligned and in constant communication. We’ve seen a growing impact from climate change, not just from traditional perils like hurricanes and earthquakes, but also from secondary perils such as wildfires, floods, and convective storms. These evolving risks demand underwriters who deeply understand the exposures and can price them appropriately. Overall, there’s significant opportunity in the commercial property space.

At QBE, we recently announced the launch of a new Commercial Property team to bring the kind of specialized expertise and experience needed to deliver long-term solutions for both brokers and customers. Our goal is to build an industry-leading team, with a customer- and broker-focused service model that drives consistency and innovation in the marketplace.

When facing current market challenges, what role can agents and brokers play alongside insurers to help mitigate insured risks? Does technology have a role here?

Choosing the right broker is crucial. A knowledgeable broker can help insureds understand their exposures, explain the risks they face, and recommend best practices to mitigate them. They also play a role in ensuring their clients are partnering with the right insurance carrier. In today’s complex and evolving risk environment, it really comes down to specialization. At QBE, we’re moving away from a generalist approach and embracing a specialist model—choosing to work with brokers who bring deep expertise to the table.

Technology has also made great strides. Brokers and carriers now have access to tools that can identify and price risk more quickly and efficiently. We’re also seeing increased adoption of generative AI across the industry to improve productivity. But even with these advancements, human connection remains at the heart of it. Exceptional customer service comes from brokers and insurers staying connected and closely engaged with their clients—it’s those conversations that lead to a deeper understanding of the risks and challenges they face.

How should the industry prepare for the coming years in terms of both underwriting risk and serving customers?

Looking ahead, the industry needs to focus on developing and preparing the next generation of talent. Insurance plays an important role in our society, and when new talent sees how it helps companies grow, rebuild, and thrive, they begin to understand the meaningful impact of a career in this field. There’s tremendous opportunity in the insurance industry right now— with innovation and fresh thinking reshaping how we approach risk. It’s an exciting time, and we all have a responsibility to attract and support talent who is committed to moving the industry forward.