‘Clear’ Soft Market Pricing

Commercial lines premiums across all account sizes rose by less than 2% on average in the third quarter of 2025–a clear indication of soft market conditions across the board.

That’s according to The Council of Insurance Agents & Brokers’ (CIAB) Commercial P/C Market Report for Q3 2025. The CIAB’s survey found that for all account sizes premiums rose by 1.6%, down from 3.7% in Q2 2025. Premiums for each account size increased by less than 2%; small account premiums increased the least, at an average of 1.2%. Survey respondents attributed this trend to “aggressive competition among carriers for small business.”

All lines of business had premium increases that were flat or lower than the previous quarter’s increases. The number of lines for which premiums decreased rose from five in Q2 to six in Q3: business interruption, commercial property, cyber, D&O, employment practices, and workers’ compensation.

Overall, the average increase in premiums across all the major lines of business (commercial auto, commercial property, general liability, umbrella, and workers compensation) was 2.7% in Q3 2025, a 45% decrease from the 4.9% average increase recorded last quarter.

The cost of cyber insurance fell the most out of all lines, down an average of 2.6% in Q3. CIAB said 43% of respondents indicated an increase in cyber underwriting capacity, with about 25% calling the increase “significant.”

Commercial property premiums decreased for the first time since Q2 2017, at an average of -0.2%. More than half of the CIAB’s survey respondents reported an increase in commercial property capacity in Q3 2025 as well–noting “a wave of new carriers and MGAs” entered the property market. Carriers that left the market in 2023 also were reported to have re-entered some regions.

Other Q3 reports confirmed the softening trends.

“Today, nearly every commercial line of insurance–aside from excess casualty–finds itself in soft-market territory,” said WTW’s Insurance Marketplace Realities 2026 report released in October. “For buyers, this creates a rare window of opportunity,” the report said. Expanding coverage, enhancing structural positions and reexamining clients’ portfolios through the lens of a broader and more flexible market is good news for buyers and brokers, the report added.

Underwriting, while disciplined, is also more flexible in today’s market, opening the door for growth-minded insurers to revisit risks they may have previously declined, according to Aon’s Q3 Global Insurance Market Overview. “Underwriters continue to differentiate, with preferred, well-managed risks experiencing the most favorable environment and outcomes,” the report said.

The pricing relief is a welcoming trend for insurance buyers and their agents. Now is the time to help commercial clients in reviewing insurance programs–review values, limits, sublimits, coverage consistency, and the quality of the markets they are currently in. But also encourage clients to reinvest their newfound premium savings in risk proofing measures that will better protect their business in the future.

Topics Pricing Trends Market