US Insurance Market Rates

US property insurance rates decline

Property insurance rates declined 9%, the same as in the prior quarter, driven by increased insurer competition and decreasing reinsurance costs.

• Clients typically achieved coverage enhancements.
• Increased capacity fostered insurer competition across industries, with some insurers offering enhancements including higher limits, revised definitions, and lower deductibles.
• Submission data generally produced fewer underwriting questions than in prior periods; however, the current economic environment may renew insurers’ focus on replacement costs and the valuation methodologies being used by clients.
• Insurer interest rose for industries traditionally considered to carry higher risk, such as multi-family housing, warehousing, food and beverage, and technical risk sectors.
• Clients explored options such as self-insurance, captives, and other alternative risk transfer methods.
• Although pricing improved and more options were available, a significant natural disaster could rapidly alter the environment.

Casualty rate increases

Casualty insurance rates increased 9%; excluding workers’ compensation, the increase was 12%.

• Workers' compensation remained a focus for insurers, but rising reserves and medical costs may impact future rates.
• Auto liability rates continued to be impacted by large jury verdicts and escalating damage repair costs.
• General liability (GL) rates were flat, though sectors like real estate, hospitality, and public entities faced increases due to loss activity.
• Some insurers offered alternative structures for auto liability and GL, such as higher retentions and corridor deductibles, particularly for larger clients.
• Increased coverage restrictions in GL included per- and polyfluoroalkyl substances (PFAS), biometrics, and cyber, with additional exclusions for real estate and hospitality related to sexual abuse and human trafficking.
• In the umbrella/excess liability market, risk-adjusted rates rose 18% in the quarter, up from 16% in the first quarter; traditional rates increased 14% in each of the past two quarters. Some insurers offered a maximum of $10 million in capacity per risk due to adverse US litigation developments.
  • Lead umbrella programs with favorable loss experience saw rate increases of 12% to 15%; those with adverse loss development faced increases over 30%.
  • Limits were often reduced, with minimal new capacity, adding to the impact of the closure of four London markets in 2024. Some high-excess insurers have raised minimum prices to $10,000 per million, impacting umbrella pricing.
  • Insurers generally shifted from single tower capacity to favoring supported umbrella options, due to severe claims frequency. Insurer concerns over third-party litigation funding grew, with lead insurers emphasizing the need for renewal pricing to account for estimated loss cost trends of 12% to 15%.
  • Increased frequency and severity of auto liability claims have resulted in insurers raising attachment points for large fleets, particularly in higher-risk states.
  • General and product liability claims showed greater severity, particularly related to incidents that occurred during the pandemic.
  • Certain insurers sought to limit coverage for specific risks, including PFAS and human trafficking.
  • The real estate sector saw limitations from lead insurers, with overall capacity decreasing.

Financial and professional lines flat

Financial and professional lines rates were flat, following 11 consecutive quarters of declines.

• Directors and officers (D&O) liability rates stabilized, with many renewals coming in close to flat or with single-digit decreases.
  • It was increasingly challenging to find capacity at expiring premium levels. Many insurers sought a minimum premium level that was higher than current pricing.
  • Some insurers opted out of renewals or reduced capacity.
• Fiduciary rates increased by 1%, following a 2% decrease in the prior quarter.
  • There was uncertainty due to lawsuits that seek to apply Employee Retirement Income Security Act (ERISA) theories, particularly excessive fee litigation involving retirement plans, health plans, and pharmacy benefit managers (PBMs).
  • Ongoing ERISA 401(k) excessive fee litigation, along with increasing defense costs, settlements, and plaintiffs' fees, continued to drive insurer losses.
  • Retentions remained a significant focus, with insurers seeking minimum class action retentions of $1 million to $10 million for larger plans.
  • Recent lawsuits regarding pension risk transfer and pension calculations have resulted in underwriters focusing on defined benefit plans.
  • New insurers offered lower retentions and often sought to participate in D&O programs when already writing fiduciary coverage.
• Financial institutions rates were flat.
  • Regulatory matters remained the primary exposure, with the potential for extensive discovery and quickly escalating defense costs.
• Errors and omissions (E&O) rates increased 1%.

Cyber rates decrease

Cyber insurance rates decreased 3%, the ninth consecutive quarter of reductions.

• Despite ongoing rate decreases, fewer insureds purchased higher limits compared to the prior quarter and to all of 2024.
• Organizations were less inclined to pay ransoms after cyber extortion events than they were three years ago. Nonetheless, cyber extortion claims persisted, with policies responding to extortion losses, albeit with longer timelines to resolution.
• The hacking group Scattered Spider, known for sophisticated social engineering and data extortion, gained notoriety in 2023 for targeting major casinos in Las Vegas. Activity attributed to the group increased in the second quarter of 2025, affecting large companies in retail, insurance, financial, and airline sectors.
• Third-party privacy claims increased due to allegations of wrongful collection and sharing of consumer data. Some insurers sought to clarify and, in some cases, restrict coverage for these claims.
• Ongoing political tensions in Russia/Ukraine and the Middle East renewed client focus on war exclusion wording.

Our rates reflect the segment mix of Marsh’s client portfolio.