The commercial insurance and employee benefits markets are regularly undergoing transitions, and 2025 has seen larger shifts than we’ve seen in quite a while. Commercial risk is seeing largely positive trends with decreased or flat renewals, while some of the benefit costs are increasing.
In this mid-year update, we’re diving into the key trends behind these changes, as well as the opportunities and challenges ahead. Understanding these shifts can help leaders make smarter, more strategic decisions for the future.
Continue reading below to learn about overall trends, request the full mid-year report, or watch the short video:
COMMERCIAL RISK
After years of challenges, the commercial risk market is seeing glimmers of hope with a more stable market for many lines of coverage. As always, the impact organizations will feel largely depends on their size, geographic locations, and industry.
Specifically, we’re seeing a softening market for:
- Property
- Workers’ compensation
- CAT exposures
Lines that are facing continued pressure, though at a slightly slower pace than previously, include:
- Commercial auto
- Umbrella/Excess liability
Overall, market conditions driving these trends include:
- Capacity changes as carrier partners’ appetites change
- Technological capabilities, specifically the use of AI for data collection and in underwriting
- Social inflation and fear of punitive damage lawsuits
- Climate disasters
Managing both the peaks and valleys of commercial insurance means staying smart about risk management, your goals, and exploring various solutions, especially in challenged industries or locations. The Kapnick team is here to help you navigate the changing market.
BENEFITS
Healthcare costs for employers continue to rise in 2025 and we’re also seeing growing pressure around fiduciary responsibilities as employers are expected to better manage plan costs and transparency. Major drivers of these trends include:
- Prescription drug spending
- Provider consolidation
- Increased utilization
Check out our full market update for more information about why these trends are occurring and how Kapnick can help you create a proactive, strategic plan.
We’re here to help you stay ahead—while delivering value to your employees and protecting your bottom line.
How Kapnick Can Help
At Kapnick, we take a proactive approach to helping you meet your big-picture goals through a range of tools and services, including:
- Analytics & advanced modeling
- Market analysis & review
- Surveys around loss control or employee satisfaction
- Claims advocacy
- Benchmarking
- Funding analysis
- And more
Whether you seek the best terms, rates, and coverages, or aim to attract and retain top talent, we are here to support your success in 2025 and beyond.
