KANSAS CITY, Mo. – March 24, 2025 – According to the latest edition of the Lockton Market Update, the U.S. property and casualty insurance market began 2025 in a relatively stable and predictable state. However, evolving economic conditions, social inflation, and other factors raise concerns about the market’s trajectory for the remainder of the year.
The quarterly report, published by Lockton, the world’s largest privately held and independent insurance broker, provides insights for commercial insurance buyers. The March report details U.S. economic conditions, significant industry headwinds and tailwinds, and includes an expert Q&A about navigating current market challenges.
“Several major industry headwinds are contributing to market uncertainty, including social inflation, natural catastrophes, climate change, trade wars, tariffs, and regulatory changes,” explained Vince Gaffigan, EVP and Director of Risk Consulting for Lockton. “Businesses should re-evaluate their insurance programs to protect their operations and balance sheets, especially now.”
Buyer-friendly conditions persist in most major lines of coverage, including property, workers’ compensation, directors and officers liability (D&O), and cyber insurance. A notable exception is third-party liability, which continues to be affected by social inflation, leading to increased pricing and reduced capacity.
“Businesses need to adapt to various factors impacting the market, including new risks related to AI, cybersecurity, social inflation, and geopolitical crises,” noted Greg Spore, Lockton’s U.S. Financial Services Market Leader. “The information and advice in our report is more critical than ever as business leaders navigate this evolving landscape.”
For additional market insights and recommendations for insurance buyers, access the March 2025 Lockton Market Update.
About Lockton
Lockton’s independence sets it apart in the industry. With over 12,600 associates operating in more than 140 countries, Lockton focuses solely on its clients’ risk, insurance, and people needs, using its worldwide expertise to deliver remarkable results. Visit www.lockton.com for more information.
