Gallagher cites competitive pricing in commercial insurance

The property market remains stable despite recent floods.

Gallagher has outlined four trends shaping the commercial insurance market in Q3 2025, pointing to economic uncertainty, shifting market conditions, and the growing influence of artificial intelligence (AI).

In casualty, higher claims costs, large jury awards, longer litigation, and more litigation funding are pressuring renewals, with buyers turning to self-insured retentions, captives, and Excess & Surplus lines to manage costs.

The property market remains stable despite recent floods and wildfires, with carriers offering competitive terms. 

Gallagher warned of rising cyber-physical risks as automation increases the chance of cyber incidents causing physical damage, often outside current policy coverage.

Cyber risk remains high, with 72% of business owners concerned about attacks, up from 69% in 2024. 

Deepfake-driven scams are emerging as a major threat, spurring proposed regulations.

Overall, competitive pricing and greater capacity are benefiting buyers, though global uncertainty is causing some to delay strategic moves.