3 Key Forces Driving Commercial Lines Costs in Spring 2025
We were hopeful heading into this year that the market would stabilize. Increases were going down and we saw a few premiums that were flat from 2024. The reinsurance renewals in January were what the carriers expected.
Nationwide has named three key factors impacting commercial insurance affordability:
- Losses from Extreme Weather
- Legal System Abuse – including a 57% increase in liability claims over the past 10 years
- Uncertainty Over New Tariffs – and potentially higher prices for goods and materials.
33% of business owners surveyed by Nationwide have reduced coverage as a way to manage expenses. We like to see our insureds have no gaps in coverage, but if you are making hard decisions, discuss them with your insurance agent. When disaster arrives, you want to Be Sure of your coverages.
Read the full report from Nationwide here.
