Softened P/C Market Conditions Clearer in Q2 2025
Premium increases continued to slow across the board in Q2 2025, and premiums for five lines decreased, according to The Council’s latest P/C Market Survey.
Property and casualty premiums across all account sizes increased by an average of 3.7% in Q2 2025, down from 4.2% in the previous quarter. The Council's P/C Market Survey found.
Large accounts fell the most among all account sizes, with respondents reporting an average increase of 2.9%, a 45% decrease from the previous quarter’s 5.3%.
The average increase across the major lines of business (commercial auto, commercial property, general liability, umbrella, and workers compensation) landed at 4.9% for both Q1 and Q2 2025. Overall, average premium increases for all lines of business except for umbrella were flat to down.
As in Q1 2025, five lines reported premium decreases: cyber, D&O, employment practices, workers compensation, and terrorism. D&O premiums fell the most out of all lines, at -2.5%. Industry sources suggest that a surplus of D&O capacity and lower demand for coverage led to carrier competition for business, pushing prices and therefore premiums down.
Umbrella premiums increased the most out of all lines. According to industry experts, nuclear verdicts were a key factor behind increases for the line, as very high damages and fees tend to pierce primary coverages and hit umbrella. This translated to reduced capacity, with one respondent from a large Southwestern firm describing capacity cuts from $10 million limits to between $2 and $5 million, requiring brokers to layer programs from different carriers to meet clients’ coverage needs.
