After a period of instability caused by pandemic, inflationary pressures and geopolitical instabilities, the commercial insurance industry is entering a period of stability and opportunity.
The latest “Insurance Market Realities” report from Willis, a WTW company, published on the WTW website, shows that.
“With more than $1 trillion in industry surplus capital and more than $725 billion in reinsurance capacity, insurers are seeking growth across multiple product lines,” the information emphasizes.
Property insurance is entering a soft market, with renewal rates down 8% in the second quarter of 2025 after falling 5.5% in the first quarter. Workers’ compensation insurance also remains favorable thanks to a $16 billion reserve surplus. The combination of significant capacity, excluding excess casualty insurance, and evolving technological capabilities is allowing organizations to provide broader coverage and optimize program structures more efficiently than in recent years.
“Buyers are navigating a very different market now than they were a few years ago,” said John Drummond, global head of insurance management at Willis. “We see significant opportunities for companies to improve their programs and increase their return on insurance spend, even if some lines of business remain under pressure.”
It is also noted that artificial intelligence (AI) is emerging as a defining force in this transformational period. Once a vision of the future, it is now changing underwriting, claims management and product design. AI-powered tools provide deeper insights into risk, enable faster, more informed decisions, and support the creation of products customized to meet new needs.
Despite improving market conditions, the report urges caution. Global losses from insured catastrophes have exceeded $100 billion annually for five consecutive years. Systemic cyber events, financial market turmoil or escalating natural disasters related to climate change could quickly alter current earnings and again lead to volatility in the commercial insurance market.
