Marketplace report shows favorable time for buyers: WTW

Willis Towers Watson PLC said Friday that well-prepared commercial insurance buyers can secure favorable terms and broader coverage options across most lines as capacity expands and insurers look to gain market share.

Willis said in its latest Marketplace Realities report that underwriting appetite is widening, and pricing has moderated from the height of the hard market.

“Buyers are increasingly encountering a competitive underwriting environment, particularly in lines where capital is not only sufficient but abundant,” the report said.

Even constrained sectors like excess casualty have seen a modest influx of new capacity, providing significant options for buyers to build effective programs and mitigate emerging risks, the report said.

In its updated forecast for 2025, Willis expects catastrophe-exposed property to be down 10% to up 10%, while noncatastrophe-exposed property is expected to be down 5% to up 5%.

General liability is up 2% to 8% in North American casualty markets, while umbrella/excess liability increased 8% to 15%. “While high-hazard classes have long contended with pricing and capacity constraints, even moderately rated risks are now subject to significant limit reductions, coverage restrictions, and pressures on minimum premiums,” the report said.

Auto liability continues to be a challenging segment, with rates up 10% to 20%. Nuclear verdicts, litigation trends and higher reinsurance costs are driving the rate increases, Willis said.

Workers compensation is forecast down 5% to up 2%.

Directors and officers public company cover is forecast down 3% to flat, while private company cover is forecast down 10% to flat, the report said.

Cyber coverage is seen renewing down 5% to up 5%. “It’s possible that we could see more significant premium increases toward the end of the year,” the report said.

The political risk insurance market remains a hard market with most risks renewing flat to up 20%, depending on countries covered, but China renewal rate increases are up 50% or more.

“The new Trump administration’s trade policies, such as sweeping tariffs (now paused for 90 days except for China), and a more transactional approach to foreign policy, have layered additional volatility on top of a precarious geopolitical landscape,” the report said.