Amwins has released new data in its “State of the Market: A Focus on Public Entity” report, offering a concise look at how public entity insurance is shaping up in 2025. Overall, conditions appear relatively stable, even as legal, legislative and valuation pressures continue to shape how risk is underwritten.
Big Picture
- The public entity market is generally stable in 2025.
- Large public entities are still guided mainly by budgets, limits, and retentions, which are staying fairly consistent year over year.
- Carriers are becoming more selective and are leaning heavily on updated data, valuations, and technology.
Property Highlights
- The property market is softening, with more capacity and competition, including for regional school districts and municipalities.
- Valuations are under the microscope as inflation and construction costs push replacement values higher.
- Large or catastrophe-exposed schedules still face tighter capacity, and layered structures are increasingly common.
Casualty Highlights
- Casualty remains pressured by legal system abuse, nuclear verdicts, social inflation, and shifting legislation.
- Reviver statutes, including California’s AB 218, are driving large volumes of historical abuse claims — one example cited is a $4 billion settlement involving Los Angeles County.
- Trends include more claims being brought in federal court to avoid tort caps and the growing use of theories that challenge traditional immunity protections.
- Collaboration among defense counsel, pools, and carriers is increasing, along with the use of analytics and AI to support litigation and claims strategies.
Professional Lines & Underwriting
- Cyber claims have not slowed, but overall appetite and underwriting requirements remain steady, with tighter conditions and fewer carriers offering higher limits, especially on larger risks.
- Some package and program carriers are reducing limits or trimming professional coverages, prompting more interest in standalone public official, crime, and fiduciary liability policies.
- Underwriting remains selective and jurisdiction-driven, with higher limits harder to secure and more emphasis on recent three to five years of loss data, standard exclusions (such as PFAS, cyber, and biometric), and higher retentions or self-insured layers.
Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.