Q4 2025 continued to demonstrate soft market conditions with premiums rising modestly by an average of 0.2% across all account sizes, down from 1.6% in Q3. According to CIAB’s quarterly survey, large account premiums fell by an average of 2.1%, marking the first time since Q4 2017 large account premiums decreased. Medium account premiums showed a percentage change of 0% and small account premiums rose by an average of 2.8%.
Across major lines of business, premium increases moderated significantly, with 9 lines recording decreases. This marks more than half of the lines tracked by the survey, up from 6 lines the previous quarter.
Premium Changes by Line of Business
Premiums increased by an average of 1.9% across all lines of business, a 30% decrease from 2.7% in Q3 2025. D&O saw the largest decrease out of all lines with a -3.8% average premium decrease.
Other notable rate changes in Q4:
- Cyber (-3.3%)
- D&O (-3.8%)
- Employment Practices (-2.6%)
D&O Premiums Drop Amid Abundant Capacity
D&O premiums decreased by an average of 3.8% in Q4 2025, marking the 8th consecutive quarter of decreases and the largest decrease among all lines. The combination of more carriers, more capacity, and strong loss performance has created favorable conditions for insureds seeking D&O coverage.
About 35% of respondents reported an increase in underwriting capacity, contributing to this relief along with a very favorable loss ratio in 2024 — named “one of the best results in a decade” by AM Best.
Commercial Auto Continues Upward Trend
Since Q3 2011, respondents have reported premium increases for commercial auto every quarter. In Q4 2025, commercial auto premiums increased by an average of 6.6%, the highest out of all lines by a large margin.
According to AM Best’s September 2025 report on the commercial auto market, the average cost per commercial auto claim more than doubled over the past decade. This equates to an average annual increase of 8%, far outpacing economic inflation. The reduction in underwriting capacity, combined with increased claim frequency and severity, continues to drive premium increases for the line.
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 Q4 2025. Readers should contact legal counsel or an insurance professional for appropriate advice.
