Commercial Insurance Market Remains Firm, But Shows Early Signs of Moderation
According to the latest data from the Ivans Index, the commercial insurance market continues to stay firm overall. Nevertheless, there are early signals that conditions may be easing from the peak tightening we’ve seen in recent years.
For most major commercial lines, average premium renewal rates increased year-over-year in the fourth quarter of 2025. This is a sign that carriers are still disciplined in their pricing. They demonstrate careful underwriting. However, some lines showed moderation or even decreases compared to the prior quarter.
Here is some notable data by line of business (Q4 2025 vs Q3 2025):
Lines Showing Reduced Renewal Momentum
- Commercial Auto: Average renewal rate declined to 6.97% from 7.60% last quarter potentially indicating more competitive pricing or underwriting tightening easing. Based on other reports I regularly monitor, I don’t expect this to be the case anytime soon.
- Business Owners Policy (BOP): Averaged 7.52% with a slight reduction vs Q3.
- Workers’ Compensation: Continued its downtrend with a -1.61% change. Still negative but a modest move compared with prior quarters.
Lines Still Firm or Hardening
- General Liability: Saw a notable increase……7.23% in Q4 vs 5.89% in Q3.
- Commercial Property: Continued upward momentum with an average 8.01% renewal change.
- Umbrella: Also ticked up slightly, ending the quarter at 9.49%.
The data suggests the overall market is still firm, particularly in liability and property exposures where carriers remain cautious. That said, the softening in some lines, like commercial auto and workers’ compensation, indicates that carriers are adapting. They are reacting to evolving risk conditions and competitive dynamics.
For insureds, expect continued firm conditions in key exposures, especially if loss activity or inflationary pressures persist.
One thing that remains consistent, proactive risk management and strong loss history remain crucial differentiators when negotiating renewals with underwriters.
If you’d like help analyzing how these market trends impact your portfolio, I can also help with your renewal strategy. Feel free to reach out. I’m here to help you navigate this dynamic landscape.
-JK
Second Harvest Food Bank of Orange County
Yesterday I was grateful to spend a few hours with this ProVisors crew who served a few hours during a workday to pack meals for those in need.
Thank you to the Second Harvest Food Bank of Orange County for allowing us to volunteer.
Second Harvest’s mission is to provide dignified, equitable and consistent access to nutritious food, creating a foundation for community health. I highly recommend checking them out and volunteering if possible.
Second Harvest offers volunteer opportunities for ages 13 and older with a chaperone in their Distribution Center.
Check out some of the pictures of the day:
75% of Small Businesses Are Underinsured According to New Survey
According to the 2023 Hiscox Underinsurance in Small Business Report, which surveyed 1,000 small businesses last July, just about half of small businesses’ revenues are on the rise.
47% of small businesses surveyed have experienced a revenue increase since 2021. 32% have had a decrease in revenue.
Those businesses that have expanded in the past two years may now be underinsured, while those that have seen revenues drop may be paying more than they need to.
The 2023 Hiscox Underinsurance in Small Business Report “gauges US businesses’ protection against potential lawsuits and claims, as well as testing their understanding of insurance policies.”
The survey found widespread insurance illiteracy and a nationwide underinsurance crisis, leaving small businesses open to loss risks ranging from property damage to lawsuits.
Of the small businesses participating in the survey, 75% of small businesses in the U.S. do not possess sufficient insurance.
The type of coverage most businesses have is also important. When asked what kind of coverage businesses had, this is what Hiscox found:
- 65% had general liability coverage
- 45% had property insurance
- 35% had worker’s compensation insurance
- 32% had professional liability insurance
Of those businesses that had coverage, 68% of those with coverage purchased it because they were concerned about the consequences of a potential claim. Only 20% noted they purchased insurance because a vendor or partner mandated it.
A growing business is a good thing but it’s important to be sure your insurance coverage keeps up. The importance of working with a knowledgeable insurance broker is paramount. And not only a broker that is knowledgeable, but one who is proactive and continuously working with your business as it grows to ensure coverage is tailored to meet the risk exposures that come with expansion.
Have questions about your business insurance?
Legal Requirements to Fulfill Before Hiring Employees
Are you planning on hiring an employee for your business for the first time? I know, I know, we’re basically heading into a recession right now, if not already in one, but I am finding that most of my clients still seem to be thriving at the moment.
What’s weird about the current state of the economy is that there are still record job openings. I hope that your company is one of them that needs employees. I take it that’s a sign that things are favorable with your business.
But have you taken all the necessary steps to set yourself up as a lawful employer?
There are several steps required by the federal and state government that must be taken before you can hire someone.
I’m not an attorney, nor a Human Resources consultant, but here is a list 10 legal requirements every employer must do before taking on a new hire:
- Apply for an EIN
- Register with your state’s unemployment insurance office
- Verify each prospective hire’s eligibility to work
- Look into your state’s workers’ compensation insurance rules—and get coverage
- Report new employees to state registry
- Set up a payroll and tax withholding system
- Have all employees fill out form W-4
- Get and post employee notices
- Comply with OSHA rules
- Establish any necessary employee benefits
For more specifics, please visit this link from The Hartford.
Though these are the main steps employers must take that are required by federal or state law, there are other smart things to do before you start employing people.
These include creating an employee handbook, so there are no questions about your rules and protocols for employees (even your first hire), and creating a personnel file for every employee.
But I encourage you to not try to tackle this on your own. Consider the help of a Business Transactional Attorney, a Human Resources Consultant, a legitimate payroll provider, etc.
I can help if you need connections to any of these professionals through my large network of seasoned professionals that I know, like, and trust.
The cost to get this initiated will be less than if you try to do it on your own and end up running into roadblocks, getting dinged for penalties and fees, etc.
Yes, the economy is in a funky place at the moment, but if you’re planning on hiring, that’s a good sign that things are going well for your business.
To keep things going on a positive trajectory, make sure to use trusted professionals to get you going on the right foot and keep your focus on your passion, your business.
-JK
Active Shooter Preparedness – Free Seminars from State Fund
State Compensation Insurance Fund, in partnership with the Department of Homeland Security, offers free seminars on Active Shooter Preparedness. These half-day courses provide important information about useful actions you can take to prepare for an active shooter event.
Participants will learn:
• The characteristics of an active shooter situation.
• How to identify and report criminal planning and preparatory acts.
• How to prepare and respond to active shooter and workplace violence incidents.
Each seminar is fast-paced, interactive, and includes lessons learned from previous active shooter incidents.
Local Southern California Dates are:
San Diego, CA
February 5, 9am – 12 pm
University of Phoenix, 9645 Granite Ridge Drive
Monterey Park, CA
February 12, 9 am – 12 pm &
1 pm – 4 pm
State Compensation Insurance Fund, 900 Corporate Center Drive
USC vs. Oregon
Even though the Trojans were throttled by the Ducks 56-24 yesterday at the Coliseum, we enjoyed our day tailgating and watching college football under the lights on a perfect Fall Saturday. Spent the day with some great friends and broke away from the Orange Curtain for a night. #ILoveLA.
-JK
Life Happens
Some days or weeks, life just happens when you least expect it to.
My wife and I whom both work full-time in heavy sales roles were smacked in the face with the reality that our nanny has to tend to her own sick child for the next few days.
My wife was literally getting ready to walk out the door for work yesterday when she got the sudden news from our nanny. Without hesitation, she stopped what she was doing and readjusted her entire day to care for our daughter.
Today it’s my turn but I am not complaining, I love this girl!
Technology allows me to get my work done anytime, anywhere. Albeit on my daughter’s clock today, not mine. I have my Agency Management System, my work phone, and my email all at my fingertips which allows me to serve my clients regardless if I am sitting in my office or not. Not to mention my support staff back at the office. How great is that?
I may not be as productive, but I’m not skipping a beat either.
Kids or not, life happens to everybody and we all must face reality. Props to my fellow soldiers out there juggling life and work and finding ways to get it done. It might not always be pretty, but somehow it always miraculously works itself out.
-JK
Small Businesses Are Opening Faster Than They Are Closing
Yesterday, the Small Business Administration (SBA) Office of Advocacy published a fact sheet by research economist Daniel Wilmoth that indicates more small businesses are opening than closing. In 2017, the number of businesses in the U.S. increased by about 118,000 with various levels of growth depending on the region. In all, 975,000 new businesses had opened by the end of 2017. The number of businesses that closed fell from 859,000 in 2016 to 857,000 in 2017. Business openings have exceeded business closings for 28 consecutive quarters, Wilmoth noted. California accounts for nearly one-third of the net increase of businesses in 2017, with 38,000.
Source: Long Beach Business Journal
-JK
Free, Three-Day Webinar For Small Businesses 5/1 – 5/3
In honor of National Small Business Week, the United States Small Business Administration and the SCORE Association are hosting a three-day virtual conference on topics such as consumer behavior, discrimination, and harassment, gaining repeat business, marketing and more. The free conference for small businesses is from 9:30 a.m. to 3 p.m. each day from May 1 to May 3. Click here to register.
The webinars include the following topics:
5/1/18
- How Changing Consumer Behavior Impacts Your Business
- Addressing Discrimination and Harassment in the Workplace
- Get New and Repeat Business On Autopilot with Email Marketing
- Creating and Sustaining a Strong Social Presence
5/2/18
- The U.S. Economic Outlook and Its Impact on Small Businesses
- Managing Your Finances in the Cloud
- Grow Your Business in 2018
- Simple Steps to Choosing the Right Financing
5/3/18
- Simple Steps to Choosing the Right Financing
- Sharing Your Story Through Video
- Pop & Play: How Opening a Pop-Up Shop Can Help Launch Your Retail Brand
- Fusion Marketing: The Next Generation of Marketing
-JK
U.S. News & World Report: California Has Worst Quality Of Life
I hate to be a Debbie downer here, but the annual ranking of states by U.S. News & World Report places California last for its quality of life and 32nd overall when all categories are rated. The categories of the “Best States” report and California’s ranking among the 50 states is as follows:
- Healthcare, 11th;
- Education, 26th;
- Economy, 4th;
- Opportunity, 46th;
- Infrastructure, 38th;
- Crime and corrections, 28th;
- Fiscal stability, 43rd;
- Quality of life, 50th.
The latter was based on two elements: natural environment and social environment. Iowa is first in the overall rankings, followed by Minnesota, Utah, North Dakota and New Hampshire. To view the full report and state-by-state rankings, click here.
If the weather were a category, there’s no question that California would take the gold medal.
-JK
About Me
I grew up in Fullerton, CA and graduated from Servite High School in Anaheim. I have my Bachelors degree from Loyola Marymount University in Los Angeles. I currently live in Tustin, CA.
Please contact me if you need help with any of the following lines of insurance for your business:
-Cyber / Data Breach
-Commercial Property
-Commercial General Liability
-Products Liability
-Workers Compensation
-Commercial Auto
-Umbrella/Excess Liability
-Errors & Omissions/ Professional Liability
-Employment Practices Liability
-Directors & Officers
-Life & Disability Insurance
Jimmy Kinmartin, CPCU 