Looking ahead to 2027, the property and casualty insurance market is bringing a mixed bag of news for business owners. We are currently seeing a highly divided market: while property insurance costs are finally beginning to ease up, auto and liability lines are continuing to face upward pressure. So, in an effort to help you budget for next year based on the current economic, geopolitical and meteorological predictions my estimates for next year follow. Read more

Overall, the industry is seeing some rate stabilization with premiums expected to increase in the 3%-4% range. The good news is for business owners that have property driven risks. As additional capital has entered the property markets pushing rates lower. Large complex property accounts are seeing better renewal terms, including lower deductible options and higher available limits of coverage. Premiums for these complex risks are seeing reductions in premiums in the mid-teem range. Mainstreet business property risks will see smaller rate reductions and may still continue to see the implementation of wind hail deductibles to mitigate risk.

Workers’ Compensation also remains highly competitive with additional companies entering the marketplace and more insurance companies offering workers’ compensation when they don’t insure the rest of the account. In Ohio a monopolistic state for worker’s compensation a $1 billion dividend was paid out this year based on the loss ratio for the 2022-2023 policy term.

Management Liability including Directors & Officers Liability, insureds can expect small increases as increases in settlement values and securities class action filings are being offset by strong market competition.

Now the rest of the story, Commercial Auto including liability and physical damage along with General Liability will continue to see price increases driven by increased auto repair costs and skyrocketing jury awards aka nuclear verdicts (to learn more about nuclear verdicts see our blog of September 22, 2026). The increase in jury awards has forced several insurance companies to reduce available limits of insurance in their excess layers. Rate increases in these lines may reach 10% or more depending on specific risk characteristics and the loss history for the account.

Market cycles aka soft market-hard market have come and gone but for over 120 years the Trusted Choice Agents at Richey-Barrett have been here to assist you. So, before you renew your policies call us for a no obligation review.