Q3 2025 continued to show soft market conditions with premiums rising modestly by an average of 1.6% across all account sizes, down from 3.7% in Q2. According to CIAB’s quarterly survey, small account premiums increased the least at 1.2%, reflecting carriers’ aggressive competition for smaller businesses.
Across major lines of business, premium increases moderated significantly, with six lines recording decreases. Notably, commercial property premiums fell for the first time since 2017 by an average of -0.2%. This was driven by increased market capacity and a softened reinsurance environment, while cyber premiums saw their fourth consecutive quarterly decline.
Premium Changes by Line of Business
Premiums increased by an average of 2.7% across all lines of business, consistent with Q2 2025. Commercial auto led with a 7.4% increase, the highest among all lines.
Other notable rate changes in Q3:
- Cyber (-2.6%)
- D&O (-2.1%)
- Employment Practices (-0.7%)
- Inland Marine (0.9%)
Commercial Property Market Sees Premium Relief
Commercial property premiums fell by -0.2% on average in Q3 2025, the first decrease since Q2 2017 and a significant shift from the previous quarter’s 1.9% increase. This moderation was largely due to an influx of additional capacity in the property insurance market and a softened reinsurance environment.
More than half of respondents reported increased underwriting capacity, with new carriers and MGAs entering or re-entering the market. The improved reinsurance market allowed primary carriers to reduce costs, benefits that were passed on to insureds.
Cyber Premiums Drop amid Increasing Competition
Cyber premiums declined by an average of -2.6% in Q3 2025, continuing a trend of softening market conditions for this line. This decrease was supported by competitive market dynamics and increased demand driven by growing awareness of cyber risks and regulatory pressures.
Nearly half of of respondents reported increased demand for cyber insurance, contributing to a more favorable buyer’s market.
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 Q3 2025 (July 1 – September 30). Readers should contact legal counsel or an insurance professional for appropriate advice.
