| Coverage Type | Trend | Range |
|---|---|---|
| General liability |  |
+2% to +10+% |
| Auto liability | |
+8% to +20+% |
| Workers compensation |  |
–3% to +2% |
| Umbrella/Excess | |
+5% to +20+% |
| Umbrella liability – High hazard/challenged class | |
+10% to +20+% |
| Umbrella liability – Low hazard/moderate hazard | |
+7.5% to +15+% |
| Excess liability – high hazard/challenged class | |
+10% to +15+% |
| Excess liability – Low hazard/moderate hazard | |
+5% to +12+% |
The Fall 2025 Insurance Market Report highlights mixed performance across the casualty insurance sector. While the industry overall improved, ending 2024 with a combined ratio of 96.6% and a $22.9 billion underwriting gain, casualty lines saw continued scrutiny. General Liability posted a $14 billion underwriting loss with a combined ratio of 121%, a sharp increase from the previous year. Auto Liability also remained unprofitable, though its combined ratio slightly improved to 113%. In contrast, Workers’ Compensation maintained profitability and helped offset broader liability losses, despite a continued, but slowing, decline in renewal rates.
The second quarter of 2025 saw continued upward pressure on casualty renewal rates. General Liability rates rose by an average of 4.4%, with a notable portion of accounts receiving increases above 10%, reflecting growing caution around emerging risks and nuclear verdicts. Auto Liability rates surged by 14.9%, marking the 36th consecutive quarter of positive rate movement. Lead umbrella and excess liability lines also remain firm, with average rate increases exceeding 12% and with over a quarter of lead umbrella programs experiencing restructuring due to capacity constraints.
Insured are increasingly turning to alternative program designs to manage rising costs and limited capacity. These include buffer policies, quota-share retentions, captive layering and other structured risk transfer strategies. The market is becoming more selective, applying pricing pressure even to traditionally lower-risk profiles. Litigation trends continue to drive costs, with tort expenses growing at an annual rate of 8.7%, outpacing GDP growth. Reinsurance rates have risen significantly and insureds are relying more heavily on Bermuda and London markets for coverage, as well as the utilization of broker-led facilities.
Emerging risks such as PFAS, glyphosate, talcum powder, sexual assault and molestation claims, pandemic-related exposures, wildfires, traumatic brain injuries and mass tort litigation are contributing to higher rates and reduced coverage availability. Entities in these sectors often face structural program changes and increased retentions. Additionally, trade policy developments, including tariffs, are expected to further disrupt supply chains and increase liability costs. Overall, the market remains challenging, with a clear divide between standard and high-hazard risks.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
