| Trend | Range | |
|---|---|---|
| Favorable risk rate predictions for 2025 | ||
| Professional liability |
|
0% to +5% |
| Property |
|
Flat to +5% |
| General liability |
|
Flat to +5% |
| Auto |
|
+5% to +15% |
| Workers’ compensation |
|
Flat to +5% |
| Umbrella |
|
+5% to +15% |
| Management liability |
|
Flat to +5% |
| Cyber |
|
Flat to +5% |
| Challenging risk rate predictions for 2025 | ||
| Professional liability |
|
+5% to +15% |
| Property |
|
+10% to +20% |
| General liability |
|
+10% to +15% |
| Auto |
|
+20% to +30% |
| Workers’ compensation |
|
+5% to +10% |
| Umbrella |
|
+20% to +30% |
| Management liability |
|
Flat to +5% |
| Cyber |
|
+5% to +15% |
Key takeaway
While the A&E professional liability (PL) marketplace remains relatively stable, A&E PL carriers are increasingly concerned about inflation, tariffs and the state of the U.S. economy, particularly regarding the rising cost of materials on projects. In addition, adverse severity claim trends reported by most PL carriers continue without any signs of improvement. Social inflation is being cited as a primary driver across all casualty lines, and PL claims are taking longer and costing more to resolve. Furthermore, emerging risks such as AI and climate change contribute to greater uncertainty and elevated risk.
The volatility in the A&E professional liability marketplace over the past 24 months should continue to stabilize for favorable risks in 2025. Capacity restrictions remain in place, but rates are mostly stable. Adverse claim trends persist alongside a continued reduction in A&E PL carriers' willingness to underwrite certain risks.
- While some A&E PL insurers are indicating premium increases across their entire book of business to offset claim severity trends, inflation and emerging risks, certain insurers are taking a strategic underwriting approach that will target high-risk projects or specific market segments. Third-party bodily injury claims on large infrastructure projects remain a difficult risk to manage, and some carriers have reduced their appetite for risks that take on these exposures.
Claim severity trends continue and were the primary driver for rate increases in 2024. Insurers note social inflation; including rising claims costs, a backlog of litigation, length of time to settle, supply chain disruptions and the rise in bodily injury claims as primary factors.
- Claim severity continues in 2025. Social Inflation continues to be recognized as a leading contributor to the increase in claim severity fueled by aggressive plaintiffs’ bar and a concerning trend of litigation financing.
While the property and casualty landscape has continued to trend favorably, carriers began 2024 by refocusing their attention to deteriorating results across their casualty books. The challenges in the casualty space follow persistent trends, such as social inflation and third-party litigation funding, which have added significant pressure to insurers’ liability reserves.
- Social inflation continues to challenge the liability market as the amount of litigation and size of verdicts have increased dramatically. Carriers are struggling to accurately project these losses in this legislative landscape and, in turn, are focused on claim management tactics and limiting capacity on challenged classes.
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