Q2 of 2025 saw premiums across all account sizes rise by an average of 3.7%, a slight decrease of 0.5% from the previous quarter’s 4.2% average. According to CIAB’S quarterly survey, this marks the 31st consecutive quarter of increased premiums across all account sizes, indicating continued but further moderating upward pressure in the market.
A significant trend this quarter was the softening of large account premiums, which increased by just 2.9%, down 45% from Q1, when they were at 5.3%. This reflects carriers being slightly more aggressive in pursuing large accounts and increased market capacity for quality large account risks. Meanwhile, small and medium accounts saw slight upticks to 4.2% and 4.0% respectively.
Premium Changes by Line of Business
Premiums increased by an average of 4.9% across all lines of business, unchanged from Q1 2025. Commercial property continued its improvement with just a 1.9% increase, a nearly 70% decrease from the previous change recorded at the end of 2024.
Other notable rate changes in Q2:
- Cyber (-1.5%)
- D&O (-2.5%)
- Employment Practices (-1.8%)
- Terrorism (-0.1%)
- Workers’ Compensation (-1.8%)
D&O Market Favorable for Buyers
Directors and Officers (D&O) liability insurance experienced its sixth consecutive quarter of premium decreases, with rates declining by an average of 2.5% in Q2 2025, exceeding the -1.7% recorded in Q1. This continuing downward trend reflects a significant shift from the hard market conditions of 2020-2021.
According to report from Aon in March 2025, the U.S. D&O market is currently “oversupplied with more than $1 billion of market capacity available,” driving increased competition for market share and lower premiums. Businesses should work with experienced advisors to evaluate their D&O coverage needs and potentially lock in advantageous terms while market conditions remain favorable.
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 Q2 2025 (April 1 – June 30). Readers should contact legal counsel or an insurance professional for appropriate advice.
