2025 Commercial Real Estate Insurance Outlook: What You Need to Know

The commercial real estate insurance market is shifting, and if you’re managing risk for your properties, there’s a lot to keep an eye on. The good news? Property insurance rates are finally coming down. The not-so-good news? Casualty insurance is still a headache, with rising claim costs and new exclusions making coverage more expensive and complicated.

Here’s What You Need to Know:

• Property Insurance is a Buyer’s Market: Competition among insurers means rates could drop 10%-20% for quality accounts.
• Casualty Insurance is Still Tough: Social inflation and nuclear verdicts are driving up claim payouts, leading to premium increases and new exclusions.
• Cyber Insurance is Looking Better: If your business has strong security measures in place, you could see rates drop by about 10%.
• Weather Events Continue to Disrupt the Market: The increasing frequency of billion-dollar climate disasters highlights the need for proactive risk strategies.
• Captives & Alternative Risk Strategies Still Matter: While captives are becoming less common for property insurance, they’re still a smart option for tackling rising liability costs.

The market is changing fast, and staying ahead of these trends will be key to managing your insurance costs and coverage in 2025.