Q1 of 2025 saw premiums across all account sizes rise by an average of 4.2%, a notable decrease of 22% from the previous quarter’s 5.4% average. According to CIAB’s quarterly survey, this marks the 30th consecutive quarter of increased premiums across all account sizes, indicating continued but moderating upward pressure in the market.
A significant trend this quarter was the considerable softening in medium-sized accounts, which increased by just 3.7%, down substantially from Q4’s 2024 6.4%. This reflects growing carrier competition and increased underwriting flexibility for quality middle market risks.
Third-Party Litigation Funding’s Impact on Umbrella Coverage
Third-party litigation funding (TPLF) continues to drive up nuclear verdicts, thus driving umbrella premium increases, which rose 9.5% this quarter. TPLF, where financiers back lawsuits for a portion of settlements, has increased U.S. liability claim amounts by 57% over the past decade per Swiss Re research.
TPLF significantly affects umbrella coverage availability and terms. Carriers are limiting capacity for certain risk categories, with underwriters scrutinizing loss history more intensely than ever before. Despite rising costs, maintaining appropriate umbrella limits remains crucial for protecting against catastrophic claims. Businesses should partner with experienced advisors to navigate this challenging market and secure necessary umbrella protection in this increasingly litigious environment.
For a consultative approach to navigating coverage and pricing changes within the insurance market, contact a UNICO Advisor.
For more information, download the full report below.
The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q1 2025 (January 1 – March 31). Readers should contact legal counsel or an insurance professional for appropriate advice.
