Lockton, the privately held, independent insurance broker, reports that the US commercial insurance market remained broadly stable in 2025, though economic uncertainties are expected to influence conditions in 2026.
“2025 opened with uncertainty for insurers, businesses, and individuals alike,” commented Vince Gaffigan, Lockton’s Director of US Market Engagement. “While much has changed over the past year, the industry finds itself on a similar track heading into 2026. Success in the new year starts with early engagement with brokers and proactive renewal strategies that will enable organisations to optimise their insurance programs and gain competitive advantages in a shifting market.”
According to Lockton, commercial insurance conditions are generally favourable across most lines, though third-party liability remains an area of challenge. Lockton notes that the industry is well capitalised, insurers have strengthened their financial positions, reinsurance costs have eased, and property markets have recovered more quickly than anticipated.
Greg Spore, Lockton’s US Professional and Executive Risk Market Leader, added that “all eyes are on new investments in technology, AI, advanced analytics, and underwriting automation. The Lockton Market Update equips insurance buyers with insights to navigate 2026 confidently and strategically.”
Lockton’s analysis shows that property and casualty carriers have delivered strong underwriting results, with commercial lines performing well and personal lines improving as rate adjustments take effect. Nonetheless, Lockton identifies ongoing concerns around rate adequacy, new money yields, slower revenue growth, and the long-term sustainability of current market conditions.
Economic uncertainty continues to define the risk environment, according to Lockton. Rising inflation and unemployment, combined with slightly lower interest rates, create mixed signals for insurers and commercial insurance buyers in 2026. In response, Lockton reports that insurers are focusing on disciplined underwriting, pricing, reserving, and portfolio management across all lines.
Lockton reports that the property insurance sector remains competitive, with carriers actively protecting existing portfolios while seeking new business opportunities. Workers’ compensation coverage is holding steady, though it continues to be shaped by regulatory shifts and broader economic pressures.
In liability insurance, growth is measured, with insurers exercising caution due to social inflation, reserve considerations, and emerging risks. Lockton observes that directors and officers liability rates have mostly stabilised for public companies, whereas private companies and nonprofits operate in a competitive market that shows signs of gradual firming.
Employment practices liability premiums are largely unchanged, as insurers closely monitor regulatory developments and trends in claims. Fidelity and crime coverage maintains steady rates, with underwriters continuing to apply disciplined approaches to social engineering risks. Fiduciary liability remains stable, although insurers remain alert to litigation around excessive fees. Cyber insurance continues to favour buyers, yet Lockton highlights that insurers are paying close attention to systemic exposures and the evolving regulatory landscape.
Lockton recommends that organisations adopt a proactive approach to managing risk and shaping insurance strategies. Engaging brokers early, strategically allocating risk capital, planning for multiple scenarios, and approaching renewals thoughtfully can help businesses strengthen coverage and secure competitive advantages in a dynamic market.
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