What businesses need to know about the 2025 Insurance market trends
Insurance market trends are evolving rapidly, and 2025 brings new challenges and opportunities for businesses. From economic shifts to climate risks and AI-driven underwriting, companies must stay ahead to protect their assets and ensure financial stability.
With premiums rising and risks changing, understanding insurance market trends is essential for securing the right cover. Let’s explore the biggest disruptors shaping business insurance in 2025 and how you can prepare.
Why businesses must stay ahead of insurance market trends
Market changes don’t just affect insurers, they directly impact businesses. Rising costs, evolving risks, and stricter underwriting can leave companies underinsured or facing higher premiums. Without preparation, businesses may struggle to secure adequate cover.
However, understanding market trends helps you make informed decisions. You can strengthen risk management, review policies early, and ensure your business remains protected. Let’s look at the biggest changes affecting the market in 2025.
Key insurance market trends for 2025
1. Economic uncertainty driving premium fluctuations
Inflation, rising interest rates, and global instability continue to disrupt the insurance market. Insurers are reassessing risk exposure, leading to premium increases for some industries. Businesses with poor risk management or high claims histories may see the sharpest rises.
What you can do:
- Review your policies early to avoid renewal shocks.
- Strengthen risk management to negotiate better terms.
- Work with an expert broker to find cost-effective cover.
2. Climate risks increasing property insurance costs
Extreme weather events are becoming more frequent, leading to higher property damage claims. Floods, storms, and heatwaves put commercial buildings, supply chains, and business continuity at risk. Insurers are tightening underwriting rules, making it harder for some businesses to secure cover without mitigation measures.
Actions you can take:
- Assess your property’s flood and climate risk now.
- Implement safeguards like flood barriers and backup power.
- Ensure your policy covers business interruption due to extreme weather.
3. Cyber threats driving demand for cyber insurance
Cybercrime is one of the fastest-growing risks for businesses. Ransomware attacks, data breaches, and phishing scams are on the rise, with SMEs being primary targets. Many insurers now require businesses to meet strict cybersecurity standards before offering cyber cover.
What you can do:
- Invest in strong cybersecurity measures to meet insurer requirements.
- Check if your policy includes cyber incident response and recovery costs.
- Train employees to spot phishing attacks and security threats.
For more about cyber insurance, click HERE to read our cyber insurance page
4. AI and data-driven underwriting changing policies
Insurance providers are increasingly using AI, big data, and automation to assess risks. Policies are becoming more tailored, but businesses with limited data or poor risk management may face higher premiums. AI also speeds up claims processing, benefiting businesses that provide accurate risk data.
What you can do:
- Keep accurate records of risk management, compliance, and incidents.
- Use technology to monitor and reduce risks (e.g., telematics for fleets).
- Work with a broker to find insurers offering AI-driven discounts.
5. Underinsurance risks due to rising property values
Commercial property values have risen sharply, but many businesses haven’t updated their policies. Underinsurance is a growing problem. if your sum insured is too low, you could receive a reduced pay-out in a claim. Some insurers are introducing strict penalties for underinsurance.
Actions you can take:
- Regularly update your sum insured to reflect current values.
- Get a professional valuation to ensure accurate cover.
- Review your policy before renewal to avoid costly shortfalls.
For more information on underinsurance, click HERE to check out our underinsurance blog
How Robison & Co can help
The insurance market is complex, but you don’t have to navigate it alone. At Robison & Co, we help businesses stay protected with tailored policies, expert advice, and ongoing support.
- Bespoke commercial insurance designed for your industry.
- Risk management guidance to keep premiums manageable.
- Proactive policy reviews to prevent underinsurance.
To discuss a new or existing policy, please get in touch with us via one of the options below!
To discuss a new or existing policy, please get in touch with us via one of the options below!
