The insurance industry is poised for relative stabilization in 2025 after years of disruption, Stonybrook Capital noted in its 2025 P&C forecast, according to the Reinsurance News website.
While some commercial lines may see moderate price declines as capacity and competition normalize, persistent factors such as persistent price increases and social inflation will mitigate these declines, analysts said.
Insurers are advised to balance competitive pricing with underwriting discipline to protect profitability. As for reinsurance, costs are expected to stabilize, providing predictability after periods of volatility, analysts said.
According to the report, analysts at Stonybrook Capital also expect consolidation to accelerate, with mergers and acquisitions creating larger and more diversified players. Private insurance and Insurtech companies are swiftly ready to go public thanks to the growing number of IPOs and strong investor interest.
This surge in IPOs is expected to be driven by private equity investment and industry consolidation due to favorable market conditions.
