From: Captive.com/IRMI
Lockton’s September 2025 report, Keep Your Eye on the Ball, outlines economic conditions, insurance market performance, and sector-specific developments.
According to the executive summary, the report emphasizes that inflation, interest rate policy, and geopolitical tensions continue to influence insurer strategies and capital allocation. Lockton noted that stability has returned in many insurance lines, but insurers remain alert to litigation pressures, catastrophe exposures, and cyber risk.
Open economic questions persist, particularly regarding monetary policy. Lockton said the Federal Reserve’s future actions remain uncertain as inflation cools but has not yet reached long-term targets. The report also pointed to risks from slower growth in China and Europe, as well as potential US fiscal constraints.
Per the report, the property and casualty (P&C) market has shown resilience through 2025. Competition has reemerged in some areas, though insurers remain disciplined in underwriting. Lockton observed that reinsurance capacity remains selective, especially for catastrophe-prone exposures.
