At the start of 2025, the U.S. property and casualty insurance market remains largely stable and predictable. However, growing economic uncertainty, social inflation, and other issues are raising questions about the outlook for the rest of the year, according to the latest edition of the Lockton Market Update.
The quarterly report published by Lockton, the world’s largest privately held and independent insurance broker, offers timely and relevant insights for commercial insurance buyers. The March report covers U.S. economic conditions, major industry headwinds and tailwinds, and includes a Q&A with an experienced risk professional on the biggest challenges in today’s insurance market.
“Major industry headwinds such as social inflation, natural catastrophes, climate change, trade wars, tariffs, and regulatory changes are adding to the market uncertainty,” said 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.”
Conditions remain buyer-friendly across most major lines, including property, workers’ compensation, directors and officers liability (D&O), and cyber. A notable exception is third-party liability, which continues to be reshaped by social inflation, driving pricing up and capacity down.
“Businesses must adapt to numerous factors impacting the market, including new risks involving trends like AI, cybersecurity, social inflation, and geopolitical crises,” said Greg Spore, Lockton’s U.S. Financial Services Market Leader. “These conditions make the information and advice in our report even more crucial as business leaders navigate an evolving landscape.”
Explore the March 2025 Lockton Market Update now for more market insights and recommendations for insurance buyers.
About Lockton
What makes Lockton stand apart is also what makes us better: independence. Lockton’s private ownership empowers its 12,600+ Associates doing business in over 140 countries to focus solely on clients’ risk, insurance and people needs. With expertise that reaches around the globe, Lockton delivers the deep understanding needed to accomplish remarkable results. For more information, visit www.lockton.com.
