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2025 Insurance market trends: What businesses need to know

2025 insurance market trends: What businesses need to know

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:A set of wooden blocks stacked in ascending order, each featuring a blue arrow pointing upwards, symbolizing growth, progress, or business success.

  • 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.

What you can do:

  • 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.

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.A humanoid AI robot with a sleek white design interacting with a futuristic digital interface, surrounded by holographic 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.

What you can do:

  • 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.

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!

01730 265500 | hello@robison.co.uk | Contact request form