At the start of 2025, the US property and casualty (P&C) insurance market shows a stable and predictable outlook, according to the latest report from insurance broker Lockton.
The March edition highlights current US economic conditions, key industry trends, and offers expert commentary on the main challenges facing insurance buyers today.
Lockton’s insights indicate that while conditions remain favourable for buyers in areas like property, workers’ compensation, directors and officers liability (D&O), and cyber insurance, the third-party liability market is experiencing significant pressure.
This sector is being reshaped by social inflation, leading to higher premiums and diminished capacity.
Lockton’s update underscores the complexities facing the insurance market as economic and social factors continue to influence pricing and availability across various lines of coverage.
“Major industry headwinds such as social inflation, natural catastrophes, climate change, trade wars, tariffs, and regulatory changes are adding to the market uncertainty,” added Vince Gaffigan, EVP, Director of Risk Consulting for Lockton. “Now, more than ever, businesses should be reevaluating their insurance programs to safeguard their operations and protect their balance sheets.”
“Businesses must adapt to numerous factors impacting the market, including new risks involving trends like AI, cybersecurity, social inflation, and geopolitical crises,” commented Greg Spore, Lockton’s US Financial Services Market Leader.
“These conditions make the information and advice in our report even more crucial as business leaders navigate an evolving landscape.”
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