P C UPDATES 2025 FORECAST
E&S Market Overview
The E&S market continues to expand.
Approaching $111 billion in premiums, comprising nearly 10% of the U.S. P&C industry.
Driven by non-admitted carrier growth and industry shifts.
“Most market experts agree that E&S will continue to comprise a larger percentage of the Commercial Insurance marketplace, grabbing market share from traditional carriers.”
Paul G. Smith
Corporate Senior Vice President, H.W. Kaufman Group,
New York, NY
RATE
Personal Insurance sectors are expected to face higher rate increases due primarily to CAT perils, with non-renewals likely in high-risk regions.
Excess Liability rates are also on the rise.
General Liability rates vary by business class.
CAPACITY
A slight increase in capacity is anticipated across most lines of insurance.
Traditional carriers expanding support for non-admitted divisions, creating new opportunities for brokers and agents.
TERMS & CONDITIONS
Policy exclusions and restrictive terms remain a challenge, resulting in us conducting detailed analysis to find most favorable solutions.
The flexibility of the E&S market allows for adaptation to evolving conditions.
LONDON MARKET
Has maintained robust balance sheets and profitability, aided by structural adjustments to reinsurance programs during the hard market.
Early 2025 renewals show a softening catastrophe pricing environment for unaffected portfolios, with reductions of 10-15%.
Investment in digital trading, analytics, and efficient capacity provision reflects the London market’s adaptability as pricing pressures increase and the risk landscape evolves.
2025 OUTLOOK
While E&S growth will remain strong in 2025, it is expected to moderate compared to recent years.
As extreme CAT events remain unpredictable, leveraging advanced technology, data, and risk mitigation strategies, alongside trusted partners like Burns & Wilcox, is essential for navigating market challenges.
