Commercial insurance buyers currently have the advantage of choice, yet the data suggests that price alone does not determine where growth comes from. As rates continue to fall, the segments performing best are those built around specific customer needs rather than a standard offering.
A market under sustained pressure
The September edition of the Insurance Times Commercial Lines Premium Index, produced with Open GI, recorded a seventh consecutive quarter of falling gross written premium across commercial lines. Specialist products were the only major line to grow, rising by 4.1% after a 2.5% increase in the previous quarter.
Why one size no longer fits
Insurance Times analysis links this demand to risks that are becoming more complex, interconnected and difficult to transfer through standard policies. It also observes that when capacity is plentiful and rate is under pressure, competing on price alone risks reducing underwriting to a commodity, whereas specialist knowledge allows firms to demonstrate value beyond rate. Businesses are also becoming more selective about where they spend their insurance budget.
A cycle that will turn, and lessons that will remain
Jason Storah, UK and Ireland general insurance chief executive at Aviva, has said that soft conditions are likely to continue until at least the second half of 2027. Matt Pini of Consilium Risk Solutions has noted that the market is cyclical and that conditions can change quickly. Firms that build relationships on relevance rather than discounting are therefore better placed whichever way rates move.
What this means beyond insurance
The same principle applies to any sector that applies a single set of terms to every customer. In online booking and live events, a fixed cancellation policy treats a customer facing a genuine emergency in the same way as one who has simply changed their mind. Offering optional, extended refund terms at the point of purchase allows each customer to choose the level of protection that suits them. The business retains its original revenue, can resell the space and gains a new source of ancillary income. Differentiation increasingly comes from flexibility that protects both sides of the transaction.
