ClassicPlan
October 24, 2025
As we approach the end of 2025, the commercial insurance market is showing both signs of moderation and emerging pressure points. For producers, especially those working with premium finance partners like ClassicPlan, this means both opportunity and the need for proactive positioning.
Key Trends to Watch
- Slowing rate increases — but still positive for premium finance.
According to the latest survey from Willis Towers Watson (WTW), U.S. commercial insurance rates in Q2 2025 rose by about 3.8% year-over-year, a moderation from earlier quarters. (Insurance Journal)
What this means for you: Clients may feel relief from steep increases, but financing remains relevant because even moderate increases still impact budget and cash flow planning. - Mixed signals across lines of business.
While overall premium growth is modest, certain lines — especially excess/umbrella liability and commercial auto — are still seeing sharp increases. On the flip side, lines such as property, D&O and cyber are more stable or even seeing softening in some segments.
Implication: You’re advising clients not just on “Should we finance?” but which layer or line of coverage might benefit most from flexible payment solutions. - Market conditions favor buyers — cautiously.
As reported by Lockton Companies, competition among carriers and moderating losses are helping ease conditions for many insureds in 2025. (Insurance Business)
For producers, this suggests that you can position premium finance not just as a cost-containment tool but as a value-added service that differentiates your offering when pricing is less of a headline concern.
How ClassicPlan Can Help You Capitalize
- Cash flow optimization: Even single-digit premium increases can affect clients’ budgets. Offering a payment plan via ClassicPlan can ease that burden and reinforce your consultative role.
- Tailored financing strategies by line: With data showing divergence across coverage lines, you can work with us to structure plans that match each client’s risk profile and budget timing.
- Competitive advantage: As carriers soften competition and insureds have more leverage, adding premium finance as a service gives you another hook in your value proposition.
- Strengthened retention: When clients value the flexibility and service you bring (including financing options), you enhance loyalty and reduce churn — something more important when market rates aren’t sharply increasing and competition is active.
Producer Takeaway Checklist
| Action | Why It Matters |
| Review upcoming renewals and highlight financing options | Show clients you’re thinking ahead about cost and cash flow. |
| Segment clients by line of business risk | Some lines still face steep increases — these are prime targets for finance solutions. |
| Include premium finance as part of your renewal conversation | Even a modest rate increase becomes more palatable with flexible payments. |
| Emphasize service and speed | Exceptional responsiveness and personal support help you stand out and strengthen client trust. |
Final Thoughts
While the commercial insurance market isn’t as frenzied as past hard markets, 2025 still offers meaningful opportunities for producers who offer thoughtful financing solutions. At ClassicPlan Premium Finance, our commitment remains the same: helping you deliver excellent client service, customized financing, and simplified processes.
Let’s partner together so you’re prepared not just for the next renewal — but for the market beyond.
