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Why We Publish This Update
The insurance market is undergoing meaningful and sustained change, particularly in California and in catastrophe-exposed regions across the U.S.
At Bender Insurance Solutions, we believe our role extends beyond placing insurance. We are committed to helping our clients understand the forces shaping the market, how those forces affect their businesses, and what proactive leaders can do to navigate them effectively.
This Market Update is part of that commitment.
We publish it quarterly to:
- Provide clear, relevant insight into insurance market conditions
- Translate industry developments into practical business implications
- Equip our clients with knowledge to make more informed risk and insurance decisions
- Support proactive, strategic conversations beyond renewal
We will continue updating this report each quarter and making it available on our website and directly to our clients.
Overall Market Conditions
We want to share an update on the current insurance marketplace as we move through the year. Conditions remain dynamic across all lines of business, with continued pressure in certain areas and early signs of stabilization in others. Economic factors, evolving claims trends, and carrier performance continue to shape underwriting decisions, capacity, and pricing.
What We’re Seeing
Commercial Insurance
We continue to see a challenging environment, particularly in property and umbrella lines. Carrier capacity remains constrained, especially in California, and underwriting scrutiny is high around valuations, catastrophe exposure, and loss history. While rate increases have moderated compared to prior years, most accounts are still experiencing upward pressure unless they are best-in-class risks.
Employee Benefits
We are seeing ongoing cost pressure driven by healthcare inflation, pharmacy spend, and increased utilization. Employers are facing difficult decisions around plan design, cost sharing, and employee experience. At the same time, interest continues to grow in alternative funding strategies and programs that support long-term cost management and employee wellbeing.
Surety
We are seeing a stable surety market overall, with strong capacity for well-qualified contractors. Underwriting remains disciplined, with a focus on financial strength, backlog, and project execution. Contractors with strong financials and a clear growth strategy continue to be well-positioned.
Personal Insurance
We continue to see significant disruption in the personal lines market in California. Carrier withdrawals, non-renewals, and limited new business capacity remain key challenges. Clients are experiencing higher premiums, reduced coverage options, and increased reliance on the FAIR Plan and excess markets.
Client Impact
We see this market continuing to reward organizations and individuals who are proactive and engaged in managing their risk. Strong financials, clear operational controls, and a focus on prevention and planning are leading to better outcomes across all lines.
Our Response
We are proud of how our team continues to support our clients in this environment. Our approach remains proactive and relationship-driven, focused on:
• Strengthening risk profiles and improving insurability
• Delivering thoughtful, high-quality submissions
• Exploring alternative market strategies
• Providing education and planning ahead of renewals
• Advocating closely with carrier partners
Industry Insights – Key Commercial Niches
Construction
We are seeing continued scrutiny around project type, contract structure, and safety controls. Labor shortages and rising material costs are impacting timelines and increasing exposure, making strong operational discipline and financial stability essential.
Manufacturing
We continue to see underwriting focus on supply chain stability, quality control, and equipment maintenance. Property values and business interruption exposures remain key considerations as replacement costs and downtime risks increase.
Real Estate (Commercial & Multifamily)
We are seeing ongoing challenges driven by catastrophe exposure, aging infrastructure, and increased litigation trends. Multifamily properties in particular continue to face pressure on both property and liability lines, with greater focus on maintenance, habitability, and risk transfer practices.
Healthcare
We continue to see elevated concern around professional liability, regulatory compliance, and workforce challenges. Staffing shortages and burnout can create operational risk, making strong protocols and risk management practices increasingly important.
Nonprofits
We are seeing increased scrutiny around governance, financial stability, and reliance on funding sources. Liability exposures remain a key focus, particularly for organizations serving vulnerable populations.
Hospitality
We continue to see pressure driven by liability exposure, alcohol-related risk, and workforce turnover. Property exposures also remain a concern, particularly for older buildings or locations in catastrophe-prone areas.
Resources & Insights
We believe one of the most important roles we play is helping our clients stay informed and prepared. In addition to our advisory work, we continue to provide:
• Educational webinars and workshops through Bender U
• Industry-specific risk management resources
• Claims prevention and safety guidance
• Renewal readiness and strategic planning support
We also monitor insights from leading organizations such as AM Best, Swiss Re, and Council of Insurance Agents & Brokers to ensure our clients benefit from current market intelligence.
Looking Ahead
We expect the market to remain complex in the near term, particularly in California. That said, we are encouraged by gradual signs of increased competition in select areas. We believe those who stay proactive, informed, and engaged will be best positioned moving forward, and we will continue to guide our clients every step of the way.
How Bender Insurance Solutions Supports You
At Bender Insurance Solutions, our role is not simply transactional. We serve as a strategic risk and insurance partner.
We support our clients by:
- Translating market intelligence into practical, industry-specific guidance
- Advocating strategically with carriers on your behalf
- Designing insurance programs aligned with your operations, growth, and financial objectives
- Partnering proactively on risk mitigation and program stability
- Providing education, benchmarking, and strategic renewal planning
Our goal is to help you navigate complexity with clarity and confidence.
Let’s Talk About What This Means for You
Market conditions are evolving rapidly, but informed and proactive organizations are best positioned to achieve stronger outcomes.
If you would like to:
- Understand how these trends affect your business
- Review your current program in light of today’s market
- Explore strategies to improve long-term insurability and stability
We invite you to connect with your Bender Insurance Solutions broker or producer to schedule a strategic insurance and risk review.
Contact us:
🌐 www.mybendersolutions.com
📞 (916) 380-5346
📧 hello@mybis.com
For Further Support: Watch Replays of Educational BenderU Webinars🌐 www.mybendersolutions.com
📞 (916) 380-5346
📧 hello@mybis.com
Sources & Disclosures
This report reflects analysis based on public disclosures, regulatory filings, and industry research, including but not limited to: California FAIR Plan Association, California Department of Insurance, NAIC, AM Best, Swiss Re Institute, Guy Carpenter, Gallagher Re, Deloitte, McKinsey, Aon, NCCI, and Marsh Global Insurance Market Index.
BenderU
A key aspect of our Mission Statement at Bender Insurance Solutions is to educate our clients. For over 10 years Bender Insurance Solutions has been committed to educating our clients with our webinars and in person events. These have covered vast topics to support our clients and the community. Through BenderU, we strive to provide seminars that bring value to our clients that enrich their risk management programs, while making the complicated understandable.
Resources/Links
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.
California Department of Insurance
The California Department of Insurance is responsible for enforcing many of the insurance-related laws of the state. We are foremost a consumer protection agency. Our number one priority is to protect insurance consumers by regulating the industry’s practices and encouraging a healthy marketplace, which is one of the largest in the world.
California Department of Motor Vehicles
The California Department of Motor Vehicles (DMV) is the state agency responsible for the registration of motor vehicles and boats and the issuance of driver’s licenses in the U.S. state of California.
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence.
Contractors State License Board
The Contractors State License Board (CSLB) protects consumers by licensing and regulating California’s construction industry. There are more than 310,000 licensed contractors in the state, in 43 different licensing classifications.
State Compensation Insurance Fund
State Fund is the largest provider of workers’ compensation insurance in California. State Fund plays a stabilizing role in California’s economy by maintaining an open door policy, ensuring all employers have a strong and stable option for their workers’ compensation needs.
California Department of Industrial Relations
The Department of Industrial Relations was established to improve working conditions for California’s wage earners, and to advance opportunities for profitable employment in California.
Workers’ Compensation Insurance Rating Bureau of California
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) is a California unincorporated, nonprofit association comprised of all companies licensed to transact workers’ compensation insurance in California, and has over 400 member companies.
