The property market continues to be fragile but is softening overall. However, with damages from Hurricanes Helene and Milton still being assessed, we understand that the state of the market could change in the coming months.

The casualty insurance market remains in a state of adjustment as we move through 2024 and into 2025. Retailers should brace for a more aggressive push in primary rate increases over the next 12 months.

The professional lines market is entering a period of transformation as carriers adapt to new opportunities and challenges. As growth and innovation stay top of mind, we’re seeing notable trends emerge including exploring untapped markets like healthcare D&O.

As we look to the January reinsurance renewal season, rates are expected to remain stable overall, with the potential for lower premiums on accounts without losses. In regards to social inflation, reinsurers are either holding the line on rate or implementing slight increases just to keep up.

The number of new entrants has slowed from last year and most regions are enjoying a surplus of capacity fueled by both carriers and London Syndicates. Overall, there is ample capacity producing downward trends on pricing and we are also seeing the beginning of softening deductibles.

Since 2023 the energy market has begun to see signs of recovery. However, catastrophic events and ongoing technological advancements that complicate coverage, particularly in the power and solar markets, have slowed progress. Conversely, the professional and property lines have begun to experience some relief.

The environmental market continues to be stable on balance. Although some carriers have exited the space, new entrants have offset their departure, helping to limit drastic rate swings or notable new exclusionary language and keep conditions competitive overall.

Market competition overall is producing flat premiums to single digit decreases and is expected to continue into 2025. The exception is excess liability, where capacity continues to be limited and care facilities can expect to see umbrella increases.

Legal, technological and actuarial factors are playing a key role in the growth of the public entity landscape. Key trends and dynamics are emerging across areas such as casualty, property, crime and cyber insurance, with important considerations for the coming year.

The market continues to face significant challenges amid an evolving landscape characterized by economic pressures, shifting carrier appetites and increasing loss severity. While some sectors show signs of resilience, the overall environment remains tough, particularly within the trucking industry.

The cyber insurance market is facing increased competition and evolving risk dynamics. This mix of new entrants and ample capacity suggests that soft market conditions are likely to persist. Ransomware attacks continue to highlight the need for insurers to assess risk portfolios more critically.

As insurers seek out more ways to optimize processes, the difference between essential and desired information is becoming clearer. Systems that were previously fraught with excessive questioning have been pared down to focus on critical security controls and preparedness.

Throughout 2024, many habitational markets set aggressive growth goals for their underwriters and expanded their appetite for business, including frame construction accounts. This additional capacity contributed to a reduction in rates from the peak levels established just the year before.

Throughout the Southeast, hospitality properties, particularly hotels, are still considered challenging risks. Exterior-entry motels and buildings with EIFS are under increased scrutiny. Coastal properties and older structures are especially impacted, often with limited coverage for wind and other perils.

The insurance market for cannabis and hemp operations has typically functioned independently from the broader P&C insurance market. However, any federal rescheduling of cannabis in 2025 could significantly advance the maturity of the industry, leading to a greater emphasis on coverage rather than price.

This sector is currently experiencing a transformative phase and showing signs of softening. There is an influx of new capacity with increased competition, impacting pricing discipline across various marine classes, including Hull and Machinery, War Risk and Builder’s Risks.

With increased media attention and growing social awareness putting a spotlight on SAM, more victims are coming forward with allegations and filing suit. Insurance carriers have paid significant amounts on claims in recent years and, as a result, market availability for SAM coverage continues to shift against buyers.

Wildfire insurance rates remain competitive but high, largely due to significant capacity being provided by Lloyd’s. E&S markets remain active, offering coverage options in states like California and Nevada, where limited capacity as well as high deductibles have become the norm for admitted markets.

Claims inflation has been a silent force shaping the insurance landscape over the past decade and we believe that trend will continue as insurers pay out ever-growing settlement values.