Property Insurance Outlook: Stabilization Interrupted by New Losses
The property insurance market had shown signs of stabilization in late 2024, with moderating rate increases after years of volatility due to increased competition and more favorable reinsurance renewals. However, the unprecedented number of wildfires and natural disasters at the start of 2025 disrupted this trend, creating renewed uncertainty. Amwins notes that while “2024 ended with a sense of optimism for property insurance rates, the increased frequency of catastrophic events has reshuffled expectations” (Amwins, 2025). Property insurance rates are expected to rise 8-15% on average for retail businesses, depending on location, construction type, and exposure to risks like natural disasters (WTW, 2024). Carriers are heavily scrutinizing property characteristics such as building age, maintenance, and fire suppression systems more than ever. Businesses that regularly maintain their property and invest in enhanced loss control measures stand a better chance of controlling premium costs and improving operational resilience, minimizing disruptions caused by catastrophic events. Casualty Insurance:
Cyber Insurance: The Emerging Frontier
Pressure on Losses and Capacity The casualty insurance market remains under pressure due to rising litigation costs and increased claims frequency across lines such as automobile and general liability. According to the Insurance Journal, “nuclear verdicts and social inflation continue to drive up the cost of claims settlements, leading to further hardening of rates” (Insurance Journal, 2025). General liability rates are predicted to rise between 5-10%, while excess/umbrella liability could see increases of 10-15% as insurers recalibrate for severity losses and capacity constraints. Automobile insurance, in particular, faces rate increases of 6-12% for retail businesses with commercial fleets, driven by repair costs, rising medical expenses, and advancements in vehicle technology (Forbes, 2025). For certain businesses, Non-Owned and Hired Automobile coverage has become increasingly difficult to obtain, with some carriers exiting the market altogether for specific industries. Workers’ compensation remains relatively stable, with rate increases of 1-5%, thanks to the success of loss control programs and safer workplace environments. Businesses that implement strong employee safety training programs and maintain low claims frequency can not only keep premiums low but also avoid workforce disruptions that would impact operations.
As cyber risks continue to escalate, cyber insurance has emerged as a critical coverage for retail businesses. The increasing prevalence of ransomware attacks, data breaches, and cyber extortion has heightened demand for coverage. According to Risk Strategies, “cyber insurance has seen double-digit rate increases for the third consecutive year as insurers grapple with rising claims and systemic risks” (Risk Strategies, 2025). Insurers now require more stringent risk management practices from retail businesses. These include implementing multi-factor authentication, endpoint detection systems, and robust employee training to combat phishing threats. By meeting these heightened standards, businesses not only secure coverage at more favorable rates but also reduce the likelihood of costly cyber incidents, thereby safeguarding their operations and reputation. The Excess and Surplus (E&S) market is playing an increasingly vital role in cyber insurance, as admitted markets limit capacity due to the unpredictability of large-scale cyber events. Businesses willing to adopt cutting-edge cybersecurity tools and protocols can position themselves as lower-risk insureds, improving access to coverage and reducing disruptions from cyber events.
Premier Flooring Retailer TISE | 2025 65
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