COLORADO SPRINGS, Colo. — Insurers are seeking to grow their books of business in a market where property and specialty rates are falling but prices for major liability lines keep rising.

At the Insurance Leadership Forum in early October, senior executives discussed the push for growth in a commercial insurance market that is changing in an uncertain economic environment.

The meeting, sponsored by the Council of Insurance Agents & Brokers, brings together insurers, brokers, reinsurers and others as companies plan their strategies for the coming year.

Insurers’ growth ambitions and market conditions remained key themes.

“Every market is wanting to grow,” said Jon Drummond, head of broking, North America, at Willis Towers Watson.

Increased capacity and a drive for more premium have led to a softening property insurance market (see related story below).

While they aim to grow, some insurers are cautious because of the uncertain economic environment, which includes rising tariffs, unemployment and bankruptcies, said Marc Kunney, San Francisco-based president of risk management and national specialties at EPIC.

“They’re looking after their profit and profitability, and it’s not a free-for-all, but they’re back in the (phase of) thinking about incremental growth,” he said.

In addition to property, some specialty insurance rates decreased.

Professional liability, directors and officers liability, cyber liability and employment practices liability are all seeing moderate decreases, Mr. Kunney said.

Cyber liability rates continue to fall as the market for the coverage expands, said Alex Blanco, CEO of Vantage Group’s insurance division.

“We’re growing in double digits, so there’s no stalling of the growth, but we also have to acknowledge the underlying rate environment,” Mr. Blanco said.

The cyber sector overall is profitable for underwriters, but some industries targeted by cybercriminals are more challenging, he said.

Some other specialty lines are seeing sometimes sharp increases.

For large hospitals, for example, professional liability rates are sometimes increasing by 20% to 30% and sublimits are being imposed on sex assault and molestation exposures, Mr. Blanco said.

Liability

Rates continue to rise for general liability, auto liability and excess liability, brokers and insurers say.

“In U.S. casualty, you’re seeing moderate increases, and there are some parts of the casualty portfolio that are very tricky, certainly around some of the transportation risks,” said Karl Hennessy, president of McGill Partners and U.S. CEO.

General liability rates are up in the single digits, umbrella rates are up 7.5% to 20%, depending on the class of business, and excess rates are up 10% to 15%, Mr. Kunney said.

Insurers continue to see increased claims due to higher settlements and jury awards. Although tort reform has been enacted in states like Florida and Georgia, the national liability market still faces challenges, Mr. Drummond said.

Aggregate liability loss trends are in the high single digits, and insurers are looking to charge rates that exceed the loss trends, said J. Powell Brown, president and CEO of Brown & Brown.

“That doesn’t mean that the market will bear that, but that’s what they’re seeing in their books,” he said.

In addition, workers compensation rates, which have been declining for years, are inching up for some buyers, Mr. Kunney said.

“We’re starting to see very small increases — 1%, 2%, 3% increases — not across the board, but definitely with some regularity,” he said.

Buyers with difficult long-tail exposures sometimes struggle to secure sufficient capacity, but several larger brokers, including Willis, have developed follow-form programs in London.

New facilities

Willis launched Gemini, a digital follow-form facility, in September. It automatically offers 12.5% capacity for a placement once the lead line is negotiated.

“It’s allowing us to bring capacity to these challenging programs and fill holes,” Mr. Drummond said.

McGill launched its London-market automatic follow facility Underscore Auton last year, Mr. Hennessy said.

“Every transaction that goes into our system is run through an algorithm and, if it is eligible, we will automatically be able to write a line on that program,” he said.

Insurers are using data and technology to help make exposures more insurable, said Sierra Signorelli, CEO, commercial insurance, at Zurich Insurance.

For example, New York construction has long been a challenging exposure because of laws that impose strict liability for falls from heights. Zurich saw more than 90% fewer incidents at a construction site where it used video coaching compared with another site with the same customer where video coaching was not used, she said.

“You can correct for things that aren’t being done properly and you reduce fraud and increase safety,” Ms. Signorelli said.

Zurich teamed with Chubb and National Indemnity earlier this year to launch a claims-made excess liability program offering $100 million in capacity. Most U.S. liability coverage is provided on an occurrence basis.

“We’ve had some good initial discussions at this point and are offering an alternative for those who are having trouble finding the capacity,” she said.

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Barring a major windstorm, property rates seen falling into 2026

Property insurers and brokers expect rates to continue falling into 2026 unless a major windstorm hits the United States before hurricane season ends Nov. 30.

Meeting at the Insurance Leadership Forum in October, past the midpoint of the hurricane season, senior executives said the sometimes double-digit rate decreases seen over the past year will continue as new capacity enters the market.

The price declines, which began last year, came after six years of hardening; however, the property line remains profitable, they said.

“There continue to be double-digit rate decreases in property and the natural catastrophe exposure is seeing more than that, so 10% to 20%,” said Marc Kunney, San Francisco-based president, risk management and national specialties, at EPIC.

Even multifamily and habitational accounts, which are viewed as riskier, are seeing decreases of 5% to 10%, he said.

“If there are natural catastrophes, things can change very quickly, but the early returns are that we’re going to continue to see rate decreases, Mr. Kunney said.

While property rate declines may not accelerate, they are unlikely to decelerate, said Jon Drummond, head of broking, North America, at Willis Towers Watson.

Insurers want to grow, and new capacity is entering the market through traditional and nontraditional reinsurance, he said.

“You’re seeing investment vehicles being created that allow (insurance-linked securities) capacity and alternative capital to come in and support the retail insurers with a smaller barrier to entry,” Mr. Drummond said.

If the hurricane season remains quiet, more pressure could build on property rates, said J. Powell Brown, president and CEO of Brown & Brown.

The pricing pendulum may previously have swung too far toward higher rates in previous years and is in the process of swinging back, he said.

“Property prices got high, maybe too high, and so they’ve come back. Depending on the number of storms that make landfall in the next year or two, we may have an extended softening,” Mr. Brown said.

While the property insurance pricing environment is shifting, it follows a period in which technical pricing was restored, said Adrian Hall, New York-based CEO, U.S., at Swiss Re Corporate Solutions.

“I would characterize it more as a recalibration in the marketplace, from a U.S. perspective, and not a retreat,” he said.