News

Last month I had the privilege to attend the 2025 Wholesale & Specialty Insurance Association (WSIA) Annual Marketplace in sunny San Diego, CA with some members of our leadership team, and over 8,800 of our closest friends, trading partners, and peers.

While some may say that this event has grown too large (did I mention that there were over 8,800 registered attendees?) it’s a great networking opportunity, and we met with over 40 of our most significant carrier partners over 2.5 days.  

All our meetings were quite positive. We communicate on an ongoing basis with our carriers; if you’re having a difficult conversation with a partner at the WSIA meeting, it’s probably indicative of the fact that you don’t have a great relationship with that carrier.

Since we don’t have anything hard to talk about, most of these meetings are more of a social call, catching up on how everyone and their families are doing, how their business is going, what they’re seeing in the marketplace, and their market predictions for the next year. I’ll share a high-level overview of what we’re hearing. Please note, this is specific to our niche corner of the industry – Excess & Surplus Lines – and your individual results may vary.

2025 is a year of cautious optimism in the E&S property and casualty (P&C) insurance world. Rates are stabilizing in some lines, dropping in others, but commercial auto and (some areas of) liability remain tough. Underwriting discipline is the name of the game, and risk selection is more data-driven than ever.

Commercial Property: Softer, But Stay Sharp

• Most insurers that write smaller property accounts are trying to get a small increase – typically 3-5%. Big property accounts are seeing renewal rates drop 5–10%. Shared/layered programs are experiencing even bigger decreases—sometimes 12–20% or more.
• Capacity is up, reinsurance costs are down, and insurers are eager to keep good business.
• Catastrophe coverage (think coastal wind, flood, earthquake) is more available, but deductibles for convective storms and wildfires are still rising.
• Improved terms are possible—margin clauses, sublimits, and deductibles are all negotiable if your data is solid.
• Looking ahead: If catastrophe losses stay average, expect more of the same into 2026.

Liability: Moderation, But Watch the Exclusions

• General liability rates are up 2–7%, but the market is less volatile than recent years.
• People have been predicting a hardening of the primary casualty market for a year or more, but we haven’t seen a lot of evidence of that in the northeast.
• High-risk sectors (construction, hospitality, education) face stricter exclusions—sexual abuse, assault, weapons, punitive damages.
• Claim severity is rising, driven by nuclear verdicts and aggressive litigation.
• Umbrella/excess liability is volatile: 10–15% rate hikes are common, with high-hazard risks seeing 25–40%. Limits are shrinking, and stacking layers is the new normal.
• Stand-alone products liability is steady but tight—underwriters want proof of safety and quality controls.

Cyber, Management, and Professional Liability: Relief and Risk

• Cyber insurance rates are flat or down, unless you’ve had claims. More competition, better risk management tools, and AI-powered security are helping.
• D&O (Directors & Officers) rates are down for public companies, flat for private/nonprofit. But watch for new exclusions—especially around AI and M&A.
• Professional liability (medical, legal, engineering) is seeing rate increases, especially in high-litigation areas. AI “hallucinations” are a growing concern in legal malpractice.

Commercial Auto: Still a Headache

• Premiums keep rising (5–20%), especially for smaller fleets and those with loss history issues.
• Political and regulatory changes add uncertainty.
• AI is being used for fleet management and training, but it’s not a silver bullet—especially for smaller operators.

Workers Compensation: The Steady Performer

• Stable pricing: Most employers see renewals from 10% down to 5% up, depending on loss history.
• Mental injury coverage is expanding, and PFAS claims are a new concern.
• Skilled claims adjusters are retiring, which could impact outcomes.
• Good loss history in workers comp can help you negotiate better terms on bundled accounts.

So that’s the “state of the market” as we’re hearing and experiencing it.  What happens with property will depend a lot on how hurricane season goes, but you also can’t discount the increase in frequency & severity of inland convective storms. I do think that a hardening of the primary casualty market is coming – with the drastic increase in claims costs driven by social inflation and nuclear verdicts, something’s got to give.

No matter what happens with the insurance market, one thing is certain – Tuscano will be here to help you and your clients navigate this ever-evolving landscape.

Speaking of evolving – our password requirements are changing!  If you haven’t logged into www.tuscano.com in a while, the next time you do you will be prompted to choose a new complex password (between 12-30 characters long, letters and numbers, upper and lower case letters, and at least one special character such as *! @ # $ %). If you run into any problems, the easiest thing to do is click “forgot password” and start from scratch, but if that doesn’t work, please email us using webhelp@tuscano.com.

A complex password is one of the cheapest and easiest ways to make yourself more secure against cybercriminals. If you’re interested in learning more about cybersecurity best practices, and how to sell this important coverage to your clients, please join us for a Cyber CE Webinar – scheduled for 10/15 at 10:00 a.m.

As always, I’d love to hear how we’re treating you (as well as what you’re seeing in the market). Please call or drop me a line to let me know!

Cheers,

Robin

robin@tuscano.com

(C) 724-454-3516