Conditions good for buyers, but uncertainty persists: Lockton

Commercial insurance market conditions remain favorable for buyers across many lines, but economic uncertainty abounds, with tariffs a key concern, according to a report issued Wednesday by Lockton Cos. LLC.

Rates continue to fall across multiple lines, particularly in property, financial lines and specialty coverages, as insurers compete for existing and new business, the brokerage said in the report

Liability remains a notable exception, as pricing and capacity challenges persist because of social inflation and rising loss severity, and broad tort reform remains elusive, the report said.

Insurers are eyeing the potential effect of tariffs on their operations and taking a cautious yet proactive stance amid rising economic uncertainty, Lockton said.

A key concern is that tariffs could disrupt supply chains and fuel inflation, leading to higher loss costs and more pressure on underwriting and pricing strategies, the report said.

“2025 has been anything but predictable,” Vince Gaffigan, Lockton’s U.S. market strategy and engagement group leader, said in a news release accompanying the report. “From social inflation and tariffs to regulatory shifts, geopolitical tensions, and a highly volatile stock market, the challenges are complex and interconnected.”

Meanwhile, early signs of firming are beginning to appear in directors and officers and cyber liability lines.

Competitive cyber market conditions persist, but modest rate increases are occurring in some instances as the claims environment grows more challenging. Although D&O rates continued to fall in the first quarter, insurers are signaling that the market “may be finally reaching its bottom,” Lockton said.