The first quarter of 2025 showed clear signs of a softening market, with average premiums across all account sizes rising just 4.2% — a 22% decline from Q4 2024's 5.4%.
Medium accounts experienced the sharpest moderation, with their average increase falling from 6.4% to 3.7% as carriers re-engaged more aggressively in the middle market. Commercial auto and umbrella remained the outliers, posting the highest increases at 10.4% and 9.5% respectively, with respondents pointing to third-party litigation funding (TPLF) as a significant driver — inflating nuclear verdicts, claim severity, and ultimately premiums across casualty lines while also reducing the availability of higher umbrella limits. Five lines recorded premium decreases this quarter — workers compensation (-2.6%), cyber (-2.1%), D&O (-1.7%), employment practices (-0.4%), and terrorism (-0.4%) — reflecting a broader trend of increased capacity, competition, and favorable loss experience across several lines.
