U.S. Commercial Insurance Faces Uncertainty in 2025
KANSAS CITY, Mo., March 24, 2025 – The U.S. property and casualty insurance market remains largely stable at the start of 2025, but growing economic uncertainty and other factors are raising concerns about the year ahead, according to Lockton. The global insurance broker released its latest market update, providing insights for commercial insurance buyers navigating a shifting landscape.
“Major industry headwinds such as social inflation, natural catastrophes, climate change, trade wars, tariffs, and regulatory changes are adding to the market uncertainty,” said Vince Gaffigan, EVP, Director of Risk Consulting for Lockton. “Now, more than ever, businesses should be reevaluating their insurance programs to safeguard their operations and protect their balance sheets.”
Lockton’s report highlights key areas of concern and opportunity within the industry. While conditions remain buyer-friendly across most major lines – including property, workers’ compensation, and cyber – third-party liability is an exception. This segment continues to be reshaped by social inflation, leading to increased pricing and reduced capacity.
Greg Spore, Lockton’s U.S. Financial Services Market Leader, noted the importance of adapting to current market dynamics. “Businesses must adapt to numerous factors impacting the market, including new risks involving trends like AI, cybersecurity, social inflation, and geopolitical crises,” he stated. “These conditions make the information and advice in our report even more crucial as business leaders navigate an evolving landscape.”
About Lockton
Lockton, the world’s largest privately held and independent insurance broker, focuses on the risk, insurance, and people needs of its clients. With a global presence in over 140 countries and over 12,600 Associates, Lockton provides the expertise businesses need to navigate complex markets.
