11 August 2025
GLOBAL PROPERTY INSURANCE
Market Outlook
EXECUTIVE SUMMARY
As we reach the end of the first half of 2025, the global insurance industry continues to exhibit a favourable market environment, with insurers worldwide offering more advantageous terms during renewals than at any point since 2017. This positive trend is underpinned by abundant carrier capacity across major international hubs — including London, Bermuda, Dubai, Singapore, Zurich and other key markets — facilitating more competitive offerings and improved underwriting conditions globally.
GLOBAL MARKET CONDITIONS
The strong underwriting results achieved in 2023 and 2024 have contributed to a more balanced and technically adequate property rating environment internationally.
Insurers renewing treaties across various regions have experienced rate reductions and enhancements in coverage terms, reflecting increased capacity and a cautious yet optimistic outlook.
The international reinsurance landscape continues to benefit from increased capacity for both catastrophe (Cat) and non-catastrophe risks. Insurers are actively expanding their lines, leveraging strong financial results from recent years to grow their primary property portfolios. The second quarter renewals maintained the momentum of prior months, demonstrating resilience and adaptability across markets worldwide.
There is ongoing growth from individual insurers, MGAs, other facilities and consortium arrangements, including market-tracking facilities and algorithmic syndicates, fostering more flexible and innovative risk transfer solutions.
Whilst there is ongoing vigilance in valuation practices to ensure accuracy and appropriate pricing, the impact on clients from inflation has greatly diminished during 2025 from prior years.
Looking at specific regions around the world, the North American property insurance market has transitioned to a more competitive phase. This shift is driven by ample capacity, improved profitability and robust reinsurance support. Rate reductions are evident, with H2 renewals showing significant programme improvements in terms of both pricing and coverage terms. This is despite a catastrophic California wildfire event, forecast to be in the USD40 billion-plus insured range.
Regions outside of North America are experiencing similar trends to North America with increased capacity and lower pricing.
The increased capacity and competitive environment of 2025 are creating favourable conditions for clients worldwide. We remain optimistic about continuing to secure optimal coverage solutions and improved terms for the remainder of 2025, in the absence of any significant catastrophic events. Our commitment is to continue providing specialist advice and innovative risk transfer strategies to meet our clients’ evolving needs.
US PROPERTY MARKET
The US property insurance market continues its transition to a more competitive phase for buyers, driven by ample capacity, improved carrier profitability and stronger reinsurance support. Despite the decreasing rating environment seen thus far in 2025, pricing is still seen as generally adequate from a technical pricing standpoint, further increasing competition.
KEY THEMES
PRICING TRENDS
Strong double-digit rate reductions on clean accounts; core CAT pricing now seen as broadly adequate following prior correction
CAPACITY
Strong carrier appetite across admitted and E&S markets; MGA, facility and program business adding further capacity. Admitted markets are starting to repatriate select accounts after retrenching in recent years.
REINSURANCE IMPACT
1 June renewals broadly flat to down ~10% for clean programmes; average rate decreases settling around 5% with double-digit reductions achievable in higher layers.
SECONDARY PERILS
Hail, SCS and, wildfire exposures remain a challenge for the marketplace and continue to be tightly underwritten.
DEDUCTIBLES
Deductible levels generally holding firm; isolated examples of lower retentions on well-performing risks.
ALTERNATIVE SOLUTIONS
Continued interest in captives, parametrics, and ILS-backed solutions for retention volatility management.
US MARKET OUTLOOK
• Continued rate reductions are expected for clean, well-performing risks through the second half of 2025.
• Challenging occupancies, CAT-heavy programmes and loss-impacted accounts may still require creative structuring and layering to achieve client goals
• Market competition is likely to remain elevated into 2026, barring any major catastrophic events US KEY WATCHPOINTS FOR H2 2025
• Atlantic hurricane season activity
• Severe Convective Storm (SCS) losses (already elevated YTD)
• Wildfire activity in the western US.
HOW GALLAGHER CAN HELP
Our large team of placement specialists can assist with the following products/occupancies:
OCCUPANCIES • Public entity • Higher Ed/Scholastic • Real estate and hospitality • Manufacturing/Industrial • Habitational/Multi-family/ Single-family rentals • Risk pools • Agri-business • Warehousing • Retail • Ports and terminals • Rail • Telecoms • Religious
PRODUCTS • Primary/Excess of loss/ Quota share limits • Large high excess limits • Difference in conditions/limits • Named perils only, i.e., flood, windstorm, etc. • Deductible buy-downs (CAT/Non-CAT)
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The Walbrook Building 25 Walbrook London, EC4N 8AW
Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 119013.