NEW YORK, May  02, 2025  (GLOBE NEWSWIRE) -- According to the latest Insurance Marketplace Realities report from Willis, a WTW business (Nasdaq: WTW), the current market environment offers opportunities for well-prepared buyers to secure favorable terms, broaden coverage options, and to re-engage in strategic risk transfer decisions that may have been a bit constrained in recent years. While this points to a buyers’ market, there are meaningful macroeconomic headwinds including renewed supply chain challenges, unpredictable tariffs, volatile financial markets, and social inflation.

With policyholder surplus in the U.S. exceeding $1 trillion and global reinsurance capital surpassing $700 billion, the commercial insurance market is operating from a position of historic financial strength. Insurance carriers are pursuing growth strategies on the belief that rate adequacy has largely stabilized, prompting broader underwriting appetites and more competitive pricing.

“Buyers are finding more negotiating power and flexibility in today’s market,” said Jon Drummond, Head of Broking North America at Willis. “It’s a moment to reassess strategies, re-engage in broader risk financing strategies, and secure the coverage depth, or other program enhancements, that may have been limited during the hard market cycle.”

A standout in this evolving landscape is the increased capacity – even constrained sectors like excess casualty have recently seen a modest introduction of new capacity. New market entrants and innovative solutions like Willis’ ‘Gemini auto-follow facility’ are providing significant options for buyers to build effective programs and mitigate emerging risks.

WTW’s latest Marketplace RealitiesReport also features expert insights from Sam Harrison, Chief Underwriting Officer at Canopius, in a "View from the Top", and also debuts a new policy wordings segment: “The Power of Clarity – Tariffs and Property Coverage,” where Helen Campbell, Head of Property Wordings for North America, explores critical clauses affected by tariff-related risks.

Willis is bullish on market opportunities stemming from ample capital, growing capacity, and renewed competition, and believes that this signals a healthy buyer’s market in 2025. Well-prepared buyers who clearly communicate risks, while leveraging strong brokerage relationships, are best positioned to benefit from the current market.

Key Price Predictions for 2025 PropertyCAT-exposed-10% to +10%Non-CAT exposed-5% to +5%Domestic casualtyGeneral liability+2% to +8%Umbrella (high hazard)+10% to +15%Umbrella (low hazard)+7.5% to +12.5%Excess (high hazard)+7.5% to +15%Excess (low hazard)+5% to +12%Workers’ compensation–5% to +2%Auto+10% to +20%InternationalFlatExecutive risksDirectors’ and officers’ public company (primary)-3% to FlatDirectors’ and officers’ private / not-for-profit (overall)-10% to FlatSide A / DIC-3% to FlatErrors and omissions (large law firms)+2% to +8%Employment practices liability (primary)Flat to +5%Fiduciary (financial institutions)-5% to + 5%Cyber Cyber-5% to +5%Political risk*Low to Moderate Hazard RisksFlat to + 20%Terrorism and political violence Terrorism and sabotage-10% to -2.5%Political violence-5% to +5% * China-related political risk rates at 50%+

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