The Executive Lines insurance market continues to evolve in 2025, with growing competition and ample capacity pushing rates downward across a range of business classes. But while it's a buyer's market, that doesn't mean it's an easy ride for brokers.
"We're seeing a lot of market saturation right now, and that's keeping the market fairly soft," says RPS Executive Lines practice leader Tim Foody.
New entrants are driving much of the downward pressure on pricing, especially in the Cyber, Tech Errors and Omissions (E&O) and Miscellaneous Professional Lines (MPL) markets.
"There's a lot of classes of business that carriers are viewing as low-hanging fruit," says RPS Vice President Nick Carozza. "For markets writing multiple lines, you might be getting hit hard by claims in some areas, and MPL can help to balance that out.
"When you have new entrants coming into a market like this, regardless of the claims experience, you're going to have downward pressure on rates, because if a carrier isn't competing on price, they're highly unlikely to win the deal."
Tech-driven managing general agents (MGAs) are further reshaping the competitive landscape by expanding into the mid-market, encroaching areas of the market that have previously been the reserve of traditional carriers.
"These carriers are extending their appetite as they recognize the need to bind more premium and see a favorable claims environment," RPS Area Senior Vice President Bryan Dobes explains. "Whereas an account with 500 employees and $300 million in revenue would have traditionally gone to a standard carrier, we now have five to 10 additional options.
"These new entrants are built for speed, bypassing some of the historical underwriting processes, which is increasing competition and continuing to push pricing down."
This evolving dynamic is creating challenges for brokers trying to deliver the best options to their clients.
"It's never been harder as a broker to know that you're delivering the most competitive terms for your clients," Dobes says. "We're getting emails on a weekly basis from carriers wanting to talk about the new capacity they're offering, and it's our job to keep broadening our understanding of these options, and making sure the coverage is where it needs to be."
And in such an environment, it's not just about pricing but also coverage detail.
"Coverage is critical, and we should constantly push the boundaries, particularly in response to new or novel claims scenarios or changes brought by major court decisions," Foody says.
Carozza sums it up best, saying: "Price isn't everything; the real value comes when a claim occurs, and having the right coverage in place makes all the difference."
And to do have the right coverage in place, brokers need to take a proactive approach.
"You need to make sure that you have a submission out in the market as early as possible, 30 to 45 days ahead of the renewal date," RPS Senior Vice President Ron Kiefer explains. "This will give you enough time to canvas the whole of the marketplace and properly market the account to the underwriters that are out there.
"And agents need to spend time with their client to make sure that these applications are done in a thoughtful manner and are accurate, as otherwise it can come back to hurt them in terms of the pricing."
In a soft market, it's the quality of advice — not just the rate — that sets brokers apart.
Learn more about what's next for the Management and Professional Liability market in the 2025 Management and Professional Liability Market Outlook.
