The Lockton Market report highlights favourable conditions for buyers in the US commercial insurance market across most lines of coverage. However, uncertainty surrounding both the economy and the insurance marketplace casts a shadow over the industry.
Liability remains a notable exception, with rising loss costs across nearly all liability lines. Despite these increasing rates, conditions generally remain predictable for buyers.
This environment has sparked increased interest in alternative risk strategies. The report notes how alternative risk products have become an essential part of many risk financing programs, helping organisations manage costs and reduce volatility more effectively.
Insurers are closely monitoring the economy and geopolitical landscape, while improving property conditions benefit buyers. Workers’ compensation remains competitive, and reserve redundancies ease pressure on third-party liability.

Lockton’s report also explores key issues such as the US economic outlook, post-election priorities, emerging risks, and effective crisis management strategies.
Market conditions are generally favourable, among the best we’ve seen in the past five years. With insurers reporting strong profits, there’s reason for optimism
Mark Moitoso, Lockton’s Risk Practices Leader
However, a large, unexpected event could disrupt this stability, making it essential to remain aware of uncertainties when evaluating your insurance program.
Social inflation continues to impact limits, rates, and attachments in third-party liability lines, prompting insurers to monitor loss trends and reserve adequacy closely.
Additionally, the directors and officers (D&O) liability market, particularly for public companies, remains buyer-friendly due to strong capacity. Meanwhile, cyber insurance pricing is declining, despite concerns about accumulating losses.
The commercial insurance market evolves continuously, much like a living organism. Staying informed of market trends and emerging risks enables businesses to make better decisions, enhance risk management, and protect their operations and finances.
FAQ
Most lines of coverage in the US commercial insurance market are favourable for buyers, with improved property conditions and strong insurer profits. However, uncertainty remains due to economic and marketplace factors.
Liability insurance continues to see rising loss costs across nearly all lines, making it an exception to the otherwise favourable conditions. Despite this, the market remains relatively predictable for buyers.
Alternative risk products are strategies that help organisations manage costs and volatility. They have become a key part of many risk financing programs, offering value by providing more control over unpredictable market conditions.
Social inflation is impacting third-party liability lines by increasing limits, rates, and attachments. Insurers are closely monitoring these trends to ensure reserve adequacy and manage potential risks.
Businesses should watch the economy, geopolitical landscape, and emerging risks. Favourable conditions in areas like workers’ compensation and D&O liability continue, while cyber pricing is declining despite growing concerns over losses. Staying informed helps businesses protect their operations and finances effectively.
by Yana Keller