As we prepare for the New Year, our focus naturally shifts from reflection to anticipation for what’s to come. Before looking ahead, however, it’s important to recognize what has been an eventful year – not only across the industry, but internally here at HAWK, as well.
2025 was defined by meaningful milestones: celebrations of growth, the welcoming of a new partner, and industry recognition that reflects the strength of our team. We are proud to carry this momentum forward as we prepare to rise to the challenges and seek new opportunities in 2026.
Let’s take a closer look at 2025, what to expect in 2026, and discuss ways HAWK is ready to improve outcomes through partnership.
| Industry Review – What Happened in 2025?
While the insurance market didn’t quite return to “normal,” it did become more predictable. Rates continued to adjust across most areas industry segments, and while some increases slowed, insurers remained careful about the risks they were willing to take on. For homeowners, drivers, and business owners alike, the biggest takeaway was simple: preparation and risk profile mattered more than ever.
Property Insurance: High Losses Continue to Shape Pricing
One of the biggest drivers of 2025 market trends was continued catastrophe losses. Global insured losses from natural disasters have remained above $100 billion for years, and 2025 was no exception. Early estimates throughout the year tracked at $80 billion in just the first half of the year and full-year projections expected to stay above the $100 billion mark again. These losses pushed carriers to remain cautious on property risks and continue tightening underwriting in high-exposure areas.
These climate-related costs are not just abstract figures, but translate into real impacts for insureds in wildfire zones, coastal regions, and storm-exposed communities, where available coverage can be harder to secure or more expensive.
Rate Increases Moderated, But Didn’t Disappear
Data from 2025 shows that commercial insurance rate increases slowed compared to prior years, with pricing up around 3.8% in Q2 2025, down from mid-single-digit increases earlier in 2024. Ultimately, this suggests the market is starting to stabilize, but proceed with caution because volatility remains.
Here’s what that trend looked like across key lines:
- Commercial property pricing softened, in some cases showing flat or even slight decreases in 2025, a shift from the large increases seen previously.
- Workers’ compensation pricing was flat/slightly down in many areas, reflecting continued profitability for most insurers; NCCI reports net premiums decreased about 3% in 2024 even as claim severity edged up.
- Liability and casualty pricing remained firm, especially where loss histories were elevated. Global indexes showed casualty rates rising while broader commercial rates eased overall.
Workers’ Compensation: Still Stable, But Trends Shift
Historically one of the more profitable lines, workers’ compensation continued to perform well through 2024 and into 2025, maintaining a combined ratio below 90, which means insurers overall were profitable on this line. However, claim severity is growing, signaling future upward pressure on pricing.
Emerging Risks: AI and Cyber
While quantifying the exact dollar impact of AI on insurance is still evolving, industry reports and outlooks highlight a real shift in risk assessment:
- Cyber liability and privacy exposures are increasingly linked to AI misuse and automated threats in 2025, affecting underwriting decisions and prompting updated policy language.
| Major HAWK Milestones – What’s Next?
As we celebrate our 10-year anniversary, we reflect not only on how far we’ve come, but on the values that have guided our trademark “Independent by Nature” over the past decade: trust, collaboration, and a commitment to doing right by our clients and partners.
Among the many highlights of the year, HAWK was honored as Virginia Partner of the Year by Keystone, a recognition that underscores our dedication to strong carrier relationships, strategic risk management, and consistent performance. Being acknowledged by a respected industry organization like Keystone is both humbling and motivating, and it reinforces the impact of the work our team does every day.
At the heart of these milestones is one driving force: partnership. Our success is built on the relationships we foster – with clients, carriers, and most importantly, our people. This year, we were proud to formally welcome Hannah John, Vice President and Commercial Risk Adviser, into her expanded leadership role. Hannah has contributed to the agency for more than half a decade, bringing expertise, dedication, and a client-first mindset that aligns seamlessly with HAWK’s mission. Her continued involvement in the agency’s growth and development represents not only a personal achievement, but a meaningful investment in our future.
As we look ahead, these accomplishments serve as both a celebration of the past and a foundation for what’s next. With a decade of success behind us and a strong team moving forward, HAWK remains focused on building lasting partnerships and delivering value in an ever-evolving insurance landscape.
| Looking into 2026 Together
Looking ahead to 2026, the insurance market is expected to remain disciplined but more predictable, with insurers continuing to prioritize well-managed risks, accurate valuations, and proactive loss control. While broad rate relief is unlikely, opportunities will emerge for clients who invest in risk mitigation, embrace new tools responsibly, and maintain strong partnerships with their advisers and carriers.
At HAWK, we enter 2026 focused on building smarter strategies, deepening relationships, and helping our clients navigate change with confidence and clarity.
Ready for a fresh outlook this 2026? Reach out to us today to learn how our mission to be most responsive and reengaging provider of risk management and insurance solutions can benefit you.
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