As we head into August, the P&C insurance market continues its “tale of two cities,” a dynamic consistently highlighted in 2025 outlooks from industry leaders. With the peak of the Atlantic hurricane season upon us, all eyes in Houston are on the tropics, a factor creating a distinct local market reality.
Here’s a glimpse of what to expect for your August renewals, backed by insights from top industry analysts.
Property & Homeowners: All Eyes on the Weather
While you may hear national news about property insurance rates beginning to soften—a trend noted in Gallagher’s 2025 Market Report for low-risk accounts—the story here on the Gulf Coast remains one of caution. The primary driver for August is hurricane risk, a factor that reinsurers and carriers are watching closely. The global financial impact of natural catastrophes, detailed in analysis from the Swiss Re Institute, is a key reason that underwriting discipline remains firm in high-risk areas. Expect firm pricing to continue for August renewals, with underwriters rewarding clients who can demonstrate robust hurricane preparedness plans.
Casualty Lines: The Pressure Continues
The challenging trends in the casualty market, driven by economic and social inflation, are set to continue through August.
- Commercial Auto: This remains the most difficult line of business. Forecasts from reports like Willis Towers Watson’s (WTW) 2025 Insurance Marketplace Realities project renewal increases in the mid-to-high single digits. These hikes are fueled by the high cost of vehicle technology repairs and persistent litigation trends, factors also analyzed by rating agencies like AM Best in their market segment outlooks.
- General & Excess Liability: Social inflation continues to be a primary concern for insurers. WTW’s report also forecasts continued pressure on liability lines, with many businesses seeing increases in the 4% to 10% range as insurers buffer against the risk of large verdicts.
- Workers’ Compensation: This remains the market’s bright spot. This stability is consistently noted across multiple brokerage reports, which credit strong historical safety records and a competitive environment for keeping the market favorable for employers, who can expect flat to slightly decreasing rates.
Key Takeaway for August:
The theme for August is preparedness. For property owners, this means having your hurricane plan documented. For all businesses, it means getting ahead of your renewal process. Start discussions with your broker now to navigate the market’s complexities and position your organization for the most favorable outcome.
