NEWS RELEASE – FOR IMMEDIATE RELEASE
Most Lines of Business Softened in Q2 2025, The Council’s P/C Market Survey Shows
WASHINGTON, D.C. – Premiums across all account sizes rose by an average of 3.7% in Q2 2025, down from the 4.2% recorded in the previous quarter. This was the 31st consecutive quarter of premium increases.
In contrast to previous quarters, large account premium increases moderated the most in Q2 2025, with respondents reporting an average premium increase of just 2.9%, a 45% decrease from Q1’s 5.3%. Some respondents noted that carriers were “slightly more aggressive” in pursuing large accounts and said there was “more capacity and [a] slight reduction in premiums” for large accounts.
For the lines of business, umbrella premiums increased the most out of all lines this quarter, at an average of 11.5%. Legal system abuse remains the main trend driving umbrella premiums, similar to previous quarters, such as in Q3 2024. Industry research showed both nuclear (over $10 million) and thermonuclear (over $100 million) verdicts hit record highs in 2024.
Carrier actions in response to these losses also contributed to a firmer umbrella market. According to one respondent from a large Southwestern firm, “In umbrella, we saw reduced capacity from many carriers, often with no reduction in premium. Where $10M layers had once been common, we were seeing $2M–$5M, forcing us to build more layers to reach desired limits. Carriers also placed more emphasis on…loss trends before offering terms.”
D&O premiums continued to fall in Q2 2025, with an average decrease of 2.5%, the largest out of all lines. As with umbrella, previous quarter trends were again seen here. A surplus of capacity—over $1 billion, according to industry experts—and competition between new carrier entrants attracted by the high premiums of 2020 and 2021 put strong downward pressure on premiums. Some respondents also mentioned that carriers used premium decreases in D&O, as well as in workers compensation, to offset increases in other lines.