Mid-Year Insurance Market Update: Some Competition in the Commercial Market, Yet Rising Personal Rates Continue

If you’re renewing your business policy this quarter or worrying about soaring home-insurance bills, you’ll want to read this.

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At Dawson’s, we’re committed to keeping a close eye on market shifts so that you don’t have to. Here’s what you need to know as of mid-2025.

 

Commercial Insurance: Where Competition Is Heating Up

After a period of steady premium increases, some businesses are now seeing a “soft market” emerge—particularly in commercial property. However this shift is not universal, with many commercial clients still seeing small increases in premium.

• Competition is increasing for some accounts. Some well-presented, low-claims commercial programmes are seeing more insurer appetite, and in isolated cases this has helped hold rates or deliver modest improvements at renewal. Most clients, however, are seeing renewals that are flat to slightly up on last year.
• Why now? Three factors are at play:
  1. A relatively quiet catastrophe-free window. With no major weather events in the past 18 months, insurers’ results have improved.
  2. New entrants and specialist players. New entrants and niche insurers (including specialist syndicates at Lloyd’s) are seeking clean-risk accounts and widening market options.
  3. Selective softness. If your business has strong governance, good risk controls and low claims frequency, you’re more likely to attract competitive terms. Higher-risk sectors and exposed locations are still more likely to face upward pressure.

What to do now:

• Review your risk profiles and underwriting data.
• Engage early: starting renewal discussions sooner gives Dawson’s the best leverage with competing insurers.

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Personal Insurance: Continued Pressure on Home, Contents & Vehicles

While commercial lines are easing, personal cover remains under tight market conditions:

• Premiums still rising. Home, contents and car insurance rates are well above inflation, driven by frequent weather events, higher rebuild costs and increased levies (e.g. EQC, Fire & Emergency).
• Location matters more than ever. Coastal, flood-prone or landslip-susceptible addresses are seeing the sharpest hikes and, in some cases, restrictions on cover.
• Broker value: After Cyclone Gabrielle and the Auckland storms, broker-managed claims averaged $5,000 more per payout than direct insurers—an outcome that can make all the difference in recovery.
• Sum Insured is important: Following the Hawke’s Bay floods of early 2023, many homeowners discovered their rebuild sums hadn’t kept pace with skyrocketing construction costs—underscoring the need to review your sums insured now.

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“Broker-managed claims averaged $5,000 more per payout after recent storms — a real difference when it matters most.”

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Recommended actions for individuals:

1. Review your sums insured to ensure rebuild values keep pace with today’s costs.
2. Consider excess and structure. A modest increase in your excess can lower premiums; you can also spread the cost with an instalment plan (fees may apply) — ask us and we’ll show the numbers so you can decide.
3. Lean on Dawson’s at claim time. Our advocacy helps you navigate complex settlements and accelerates fair outcomes.

 

Looking Ahead

The market is behaving in two halves: pockets of competition for well-presented commercial risks, and continued pressure for many personal policies. That means the right approach is tailored — not one-size-fits-all. At Dawson’s we’ll help you understand the likely outcomes for your situation and the practical steps worth taking.

Talk to Dawson’s to review your renewals, check your sums insured, or get a realistic assessment of what options are likely to be available to you.