Second quarter P&C outlook is a mixed bag

Nuclear verdicts and natural disasters have carriers exercising caution, but the second quarter is mostly looking up for the P&C market.

Panelists at the Burns & Wilcox P&C Market Outlook Q2 2025 webinar weighed in on various lines:

• On the commercial side, “it’s not a straightforward soft or hard market,” said Connor Farquharson, manager, commercial insurance with Burns & Wilcox. Carriers are willing to lower rates to keep renewals, but they’re not budging on deductibles or coverage limits. “Carriers are really sticking to their guns to protect themselves,” he said. “It used to be the rate would protect them; now it’s the coverage.”
  Clients are seeing lower liquor limits — around $300,000 to $500,000 instead of $1 million — due to the impacts of litigation and large verdicts around the country. Auto coverage is similar, with risks being harder to place right now.
• For personal lines, while the home insurance market overall is stabilizing, carriers are increasing home hardening requirements, like clearing brush and other hazards away, for owners. “What used to be recommendations now might be requirements,” said Pamela Alphabet, associate vice presidents, personal insurance with Burns & Wilcox. “They might be used to reduce premiums or even be a factor in coverage eligibility.”
  After Hurricanes Helene and Beryl caused widespread flooding last year, flood coverage is top of mind for many, and a lot of insureds are still without coverage. Last year’s active weather have also pushed many carriers to start implementing wildfire deductibles, and wind and hail deductibles are increasing.
• For professional liability — E&O coverages, management liability, cyber risks — many lines have continued to soften. Carriers are creating coverage enhancements and getting creative about writing new business to stay competitive. “I kind of thought we would be seeing rate increases at this point,” said Matt Baxter, director, professional liability with Burns & Wilcox. “But even in a softening market, hard-to-place accounts still exist.”