WASHINGTON, D.C. – Strong signs of moderation were evident in Q3 2025. Premiums across all account sizes rose by 1.6% this quarter, a 57% decrease from the 3.7% increase recorded last quarter, according to The Council’s Q3 P/C Market Survey. Each of the three account sizes recorded premium increases of less than 2%.
Likewise, reported premium increases for all lines of business were either flat to or lower than Q2. Premiums for six lines of business decreased in Q3, up from five in the previous quarter. These lines were business interruption, commercial property, cyber, D&O, employment practices, and workers compensation.
Even umbrella, whose premium increases rose steadily from 7.0% in Q1 2024 to 11.5% in Q2 2025, showed a clear indication of premium moderation in Q3, with respondents reporting an average premium increase for the line of just 5.5%.
Out of the lines that showed decreases in premiums, commercial property stood out the most. Though premiums for the line decreased an average of just -0.2%, this was the first time commercial property premiums decreased since Q2 2017. Respondents and industry sources painted a picture of abundant capacity, enabled by a wave of carrier and MGA entrants to the market, and a much more favorable reinsurance market compared to 2023.
The cyber line of business set another record decrease in Q3 2025, the fourth out of the past six quarters. Respondents reported premiums for the line fell by an average of 2.6%, the largest decrease out of all lines. According to respondents and industry sources, the same factors drove premium decreases for this line as in commercial property: ample capacity and a beneficial reinsurance market. The growth in the cyber ILS market may have also contributed to the buyer’s market in Q3 2025.