2025 ended with the softest market conditions since 2017 for all account sizes and the majority of lines of business, according to The Council’s Q4 2025 P/C Market Survey. Across all account sizes, premiums increased by an average of just 0.2%, down from 1.6% in Q3 2025. Large account premiums decreased by 2.1%, a decrease of more than 230% from the previous quarter, which showed a 1.6% average increase for that account size. Medium accounts showed no change at all, with respondents reporting an average increase of 0.0%.
Similarly, premiums for nine lines of business—more than half of the lines tracked by this survey—showed decreases: business interruption, commercial property, construction, cyber, D&O, employment practices, surety bonds, terrorism, and workers compensation. Cyber premiums dropped by more than 3%, which set the fifth record decrease for the line since Q2 2024. D&O premiums fell by an average of 3.8%, the largest decrease out of all lines and the eighth consecutive decrease for D&O. Respondents and industry sources like AM Best attributed these D&O decreases to abundant capacity and a very favorable loss ratio in 2024.
On the other hand, both commercial auto and umbrella did not experience as much moderation as the other lines. Commercial auto premiums increased by an average of 6.6%, the highest increase out of all lines of business. This was the 58th consecutive increase in premiums for commercial auto. Respondents and industry sources indicated that litigation issues, including social inflation and nuclear verdicts, were driving claim frequency and severity, and subsequently reduced capacity, in commercial auto.
It’s no coincidence that umbrella was the other line of business besides commercial auto that showed a relatively high average increase, at 4.7%. According to AM Best, the high commercial auto claim severity from litigation meant that auto claims tended to spill over into umbrella, in turn driving up claim costs for that line.
