As we move further into 2025, the North American commercial insurance market is presenting a unique and promising landscape for insurance buyers — a moment shaped by robust capital inflows, expanding capacity and a competitive drive among carriers to gain market share. While not without its challenges, including renewed supply chain concerns, tariffs, volatile financial market, social inflation, the current environment offers opportunities for well-prepared buyers to secure favorable terms, broaden coverage options and re-engage in strategic risk transfer decisions that may have been constrained in recent years.
Insurance carriers continue to pursue growth strategies under the belief that rate adequacy has reached a profitable level across most lines. As a result, underwriting appetite has begun to widen and the elevated pricing seen during the height of the hard market has notably moderated. Buyers are increasingly encountering a competitive underwriting environment, particularly in lines where capital is not only sufficient but abundant.
This favorable dynamic is underpinned by a remarkably strong capital foundation. Policyholder surplus in the U.S. has surpassed $1 trillion, while global reinsurance capital has reached new record highs in excess of $700 billion. Traditional reinsurers remain active and institutional investors continue to allocate resources to insurance-linked securities and collateralized reinsurance strategies, further amplifying the availability of capital. This influx is driving healthy competition and creating a market more responsive to buyer needs.
Capacity is operating at a surplus in most lines of insurance, with one notable exception: excess casualty. However, even in this historically constrained segment, we are seeing a meaningful shift. New entrants — such as MSIG, Tokio Marine HCC and Canopius — have stepped into the market, bringing much-needed additional capacity. The emergence of follow-form facilities, including Willis’ Gemini auto-follow facility, has also added depth to available layers, increasing options for risk managers looking to structure effective excess programs.
Despite these positive developments, insurers continue to navigate a volatile and evolving risk landscape. The industry has now faced five consecutive years of $100 billion-plus in natural catastrophe losses, suggesting that elevated property loss frequency and severity may no longer be episodic but structural. Similarly, the challenges of social inflation remain unresolved, with excess casualty carriers deploying smaller, more surgical layers of coverage that are increasingly targeted by an emboldened plaintiffs’ bar. The tariffs have not only disrupted the financial markets, but they will put pressure on supply chains and may lead to heightened losses in trade credit. That said, carriers are more measured, data-driven and operationally efficient than ever before, and the lessons of the past decade remain deeply ingrained
For insurance buyers, the message is clear: now is a time of opportunity. The market is signaling flexibility, responsiveness and innovation. As capacity returns and capital remains abundant, strategic buyers who can clearly communicate their risk profile and leverage strong brokerage relationships are well-positioned to benefit.
We trust that readers of Marketplace Realities will find this edition insightful, with in-depth commentary on market actions across the commercial insurance landscape. We extend our sincere thanks to Lucy Clarke, President of Risk & Broking at Willis, a WTW business, and Sam Harrison, Chief Underwriting Officer at Canopius, for sharing their perspectives on the market in our View from the Top - “Evolving markets: Opportunities and challenges in the insurance industry" interview. Lastly, we are also pleased to introduce a new feature, "The power of clarity - Why the words matter", focused on in-depth coverage analysis. In this inaugural segment release, Helen Campbell, Head of Property Wordings for North America, examines several key clauses in property policies that may be affected by tariff-related exposures.
Lucy Clarke and Sam Harrison discuss insurance trends, innovation and their 2025 outlook.
The recent imposition of widespread tariffs is expected to disrupt supply chains, similar to challenges experienced during the COVID-19 pandemic.
The U.S. property insurance market transitioned to a more competitive environment in 2024, particularly for large commercial risks.
The casualty insurance marketplace in North America varies depending on product, exposure, industry, loss experience and jurisdiction of risk.
Carriers are focusing on the middle market. New entrants have gained ground, and established players are reallocating resources, adding underwriters, and broadening terms to grow.
The Canadian insurance market will remain stable but face new pressures, requiring rapid adaptation and a clearer value proposition.
Despite 2024’s record insured losses and reinsurance concerns, the Canadian property market stabilized in 2025 with competitive rates and a focus on top-line growth.
In 2025, Bermuda’s insurance market reflects a shift toward renewed competition and selective growth. Property markets are softening as abundant capacity returns, particularly for preferred risks.
While market stabilization has continued through the first half of 2025, carriers are aiming for flat rates on all layers given rate decreases over the past 18 months.
The predominant message is one of a persistent, competitive marketplace, tempered by pressures toward rate stabilization.
The EPL market continues to be competitive with markets eager to write new business and maintain their renewals.
While primary markets have realigned their pricing to account for long-term loss trends, rate increases for large law firms have been lower this cycle.
Companies of all sizes and operating across every industry segment are targets for social engineering schemes.
After a period in which some carriers moved away from fiduciary, there emerged enough carriers with increased appetites to create improved and stabilized market conditions.
The financial lines market is still strong despite insurer exits. More class actions and regulatory changes could affect claims.
Alternative risk programs continue to play a significant role for enlightened insureds.
The A&E PL market is stable, but carriers worry about inflation, tariffs, and the U.S. economy, especially rising material costs. Claims are also getting more severe and costly.
The competition in the aviation and space insurance market is expected to be less intense in the first half of 2025, but buyers should remain proactive in case conditions tighten.
Global risk turbulence and interconnected risks underscore the need for strong risk management and financing strategies.
U.S. rates vary by location, judicial environment, risk profile, and project type. Higher hazard projects like street construction face ongoing rate pressure.
Amidst an active redrawing of the geopolitical landscape, new ‘crisis management’ market capacity has contributed to a broad softening of the rate environment, creating a prime buying opportunity.
Q4 2024 market softening slowed in Q1 2025. Insurers aim for GWP growth, maintaining a competitive, buyer-favoring market despite rising claims and oilfield services challenges.
The 2025 marketplace will continue to provide clients with favorable loss histories ample opportunities to improve the terms and conditions of their environmental programs.
Insurers remain concerned about aberrational verdicts, and sexual abuse allegations continue to be a key concern for underwriters.
An influx of new product and professional liability capacity in the life sciences marketplace is underpinning an environment of ongoing stability.
Market rate conditions are easing but underwriting information, including exposure increases may drive premium increases.
The marine stock throughput program structure continues to be a viable option when compared to the more traditional approach of insuring inventory exposures within the property market.
As we move into 2025, the marine insurance market continues to soften with all classes of business under pressure from increased insurer capacity.
The North America personal lines insurance market faces rising rates and selective carrier appetites due to higher costs and natural disasters, emphasizing the need for informed advice.
The financial lines market is still strong despite insurer exits. More class actions and regulatory changes could affect claims.
Recent trends show a significant rise in recalls, with 2,454 recorded in 2024, a 115% increase since 2018. Notable large losses include an onion contamination, a deli meat recall, and vehicle recalls.
The upward swing we’ve seen on rates beginning in Q1 2024 has levelled out recently, although we expect a modest upward rate trend through the spring and into the summer of 2025.
As we enter 2025, the surety industry faces potential impacts from shifts in tariffs and government funding, while maintaining overall vibrant activity and stable rates.
Despite challenging macroeconomic conditions, market conditions for new insureds remain favorable.
RWI practitioners expected a Q1 boost in 2025, but market volatility has led to the slowest U.S. dealmaking in 20 years, complicating insurers' efforts to raise rates and tighten coverage.
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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).
