Q3 2025 Insurance Market Update: What Business Owners Should Know

Following our Q2 2025 insurance market report, we’re back with new insights for Q3—and they bring more good news for business owners. Many commercial insurance lines continue to show signs of softening rates, and competition in cyber insurance is expanding (with some caveats).

If you’re planning for your next renewal or simply trying to control expenses, here’s what you need to know.

Commercial Insurance Rate Trends: Q2 vs. Q3

According to the Ivans Index, many commercial lines saw modest decreases in premium renewal rates this quarter. Here’s how Q3 compares to Q2:

Business Line	Q2 2025	Q3 2025	Trend
Commercial Auto	8.43%	7.6%	Slightly down
Business Owners Policy	7.87%	7.55%	Slightly down
General Liability	4.66%	5.89%	Increasing
Commercial Property	7.89%	7.64%	Slightly down
Umbrella	9.07%	8.99%	Slightly down
Workers’ Compensation	-1.75%	-1.42%	Still negative, but rising

What this means for you: If your renewal is approaching, now is a good time to revisit your coverage. A softening market could mean better rates or expanded options, depending on your industry and risk profile.

Cyber Liability Coverage: Evolving and Expanding

The cyber insurance market continues to shift. According to recent reports, premiums for standalone cyber policies have dropped for the second year in a row. At the same time, new players—particularly nonadmitted carriers—are entering the market.

While more competition can mean lower pricing, it also comes with more variability in coverage. Nonadmitted carriers aren’t regulated by the state, so their policies may include different terms, exclusions, or cancellation rights. If a nonadmitted carrier fails, the state typically won’t back the policy.

Tip: If you’re considering cyber coverage, be sure you understand who the carrier is, how the policy is written, and whether it aligns with your business’s risk exposure.

Why Insurance Rates Change (Even Without a Claim)

It’s a common question: Why do rates go up even if I haven’t filed a claim?

The answer lies in how insurance works. Carriers base your premiums not only on your business’s history, but also on broader industry and market risks. Factors like:

• Severe weather events

• Large liability settlements

• Cyberattacks on critical infrastructure

• Inflation and repair/replacement costs

All of these affect how insurers model risk and price coverage. Even if you’re claim-free, your rates can shift as carriers re-evaluate what it takes to remain solvent and meet claim obligations.

How Carriers Manage Risk (and Why It Affects You)

Insurance companies use the premiums they collect to build financial reserves, which they use to pay out claims and invest in the market. When reserves are healthy, insurers may:

• Offer better pricing

• Retain higher-risk clients

• Expand coverage into new areas

When reserves are tight, they may:

• Increase premiums

• Limit new business

• Drop high-risk clients

• Shift their investments into safer vehicles

Carriers also rely on reinsurance—insurance for insurers—to protect themselves from catastrophic losses. When reinsurance is affordable, they’re more willing to take on risk. When it’s expensive, they may pass those costs down to clients.

Bottom line: Even events far outside your business’s control—like hurricanes or geopolitical conflict—can affect how much you pay for insurance.

Related article — Why Your Insurance Premiums Are Skyrocketing: The Insurance Industry Crisis Explained

What Business Owners Should Do Now

Whether you’re renewing soon or just want to stay proactive, here are a few smart steps to take:

• Review your coverage at least 90 days before renewal

• Ask your agent for updated quotes based on Q3 market trends

• Look at deductible options and updated coverage limits

• Make sure your cyber policy fits today’s evolving threats

• Work with an independent agent who shops multiple carriers

Let’s Talk About Your Coverage

The insurance landscape is constantly changing, but you don’t have to navigate it alone. At The Ross Maghan Agency, we help you stay ahead of trends, avoid overpaying, and keep your business protected—no matter what the market looks like.

If you have questions about your current policy or want a fresh look at your options, call (732) 566-0003 to discuss your insurance needs and get a personalized quote that perfectly fits your situation.