Commercial insurance premiums saw a slowdown in the third quarter of 2025, according to a recent survey by The Council of Insurance Agents & Brokers (CIAB). Overall, prices for commercial property and casualty insurance rose just 1.6%, significantly lower than the 3.7% increase reported in the previous quarter.
The survey highlights a clear softening in the market. Several lines, including business interruption, commercial property, cyber, directors and officers (D&O), employment practices, and workers compensation, actually saw premiums drop during this period. Cyber insurance led the decline with an average price reduction of 2.6%. This was linked to a boost in underwriting capacity, with 43% of respondents noticing more room to write policies and about a quarter describing this increase as significant.
For commercial property insurance, premiums decreased by 0.2%—the first drop in eight years. This change is largely driven by more capacity entering the market. New insurance carriers and managing general agents are coming back or joining for the first time, and better conditions in the commercial property reinsurance market are also helping keep costs down for policyholders.
Competition has been especially strong around small business accounts, with carriers eager to attract and retain these clients. This has contributed further to the softer pricing.
Premium increases for umbrella coverage, which protects beyond underlying policies, also slowed sharply. While this line saw an 11.5% average increase in the second quarter, it rose by just 5.5% in the third quarter. The reasons for this drop are not yet clear, according to the CIAB report.
In short, the commercial insurance market is easing up. More capacity and competition are leading to lower price hikes, and in some cases, even price drops. This shift offers some relief to businesses looking to renew or buy coverage in a traditionally tough market.