Increased Underwriting Scrutiny The emphasis on risk management and loss control reached new heights in 2024. This trend will continue in 2025. Insurers are placing stricter requirements on businesses to implement robust safety measures, regular inspections, and invest in employee training programs. BCG emphasizes that “insurers are adopting advanced data analytics to evaluate risk on a granular level, driving more precise underwriting decisions” (BCG, 2025). Businesses that capitalize on these requirements by proactively enhancing their safety and loss control measures can reap significant benefits. Not only can they keep insurance premiums in check, but they can also reduce operational downtime caused by loss events. This allows them to focus on growth, customer satisfaction, and long-term resilience. E&S Market Growth: Filling Capacity Gaps The Excess and Surplus (E&S) insurance market has seen significant growth in recent years, this trend will continue in 2025. As traditional insurers pull back from high-risk or catastrophe-prone areas, the E&S market is filling those gaps. Risk Strategies notes that “the E&S market has become a lifeline for businesses struggling to find affordable coverage in the admitted market” (Risk Strategies, 2025). This growth has been particularly evident in property, liability, and cyber insurance, where standard insurers are limiting exposures or reducing capacity. Retail businesses are increasingly Retail businesses face mounting challenges in securing affordable and comprehensive coverage due to rising losses, capacity constraints, and increased underwriting scrutiny. However, those who adopt proactive risk management strategies, invest in safety & cybersecurity, and engage with brokers early can turn these challenges into opportunities. As Securitas emphasizes, “proactive risk management and early engagement with insurers will be critical for businesses seeking to manage their insurance costs and ensure adequate protection” (Securitas, 2025). In conclusion, while the property and casualty insurance market is experiencing stabilization in some areas, ongoing challenges like natural disasters, social inflation, and cyber risks continue to disrupt the industry. Businesses that capitalize on increased risk management will not only mitigate insurance costs but also reduce operational downtime and improve their ability to thrive in a difficult environment. turning to the E&S market to secure coverage. Challenges and Opportunities Ahead
Sources Forbes: 2025 Car Insurance Outlook BCG: US Retail Predictions 2025 Amwins: State of the Market 2025 Outlook
WTW: Insurance Marketplace Realities 2025 Insurance Journal: Insurance Market Challenges in 2025 Risk Strategies: State of the Market Report 2025 Securitas: Emerging Risks 2025
66 Premier Flooring Retailer TISE | 2025
Made with FlippingBook Digital Publishing Software