The property insurance market in Q3 remains stable with a deceleration in rate increases. There is plenty of capacity and competition, with single-insurer placements and layered program rates trending down. Also, rate adequacy during the last four years, stronger attention to property valuations, and tighter policy terms and conditions, including higher wind and hail deductibles, helped create a more stable environment. At the same time, insurers have benefited from more favorable treaty reinsurance pricing, thereby reducing costs.
The “softening” trend is expected to continue into 2026, barring any major catastrophes. While we’ve had a busy first half of the year (i.e., California wildfires) for insured losses, so far, the 2025 hurricane season has been quiet. For the first time in 10 years, the United States has reached mid-October without a single hurricane making landfall. The last time this happened was during the 2015 Atlantic hurricane season. (It’s important to note that, as of this writing, Category 5 Hurricane Melissa is expected to hit Jamaica.)
Additionally, according to Gallagher Re’s Q3 2025 Natural Catastrophe & Climate Report, global catastrophe losses so far this year remain manageable, with preliminary total economic losses reaching approximately $214 billion for the first nine months, which sits below the decadal average.
However, while the full year remains “manageable to date,” Gallagher Re emphasized that volatility will persist, meaning that a major hurricane or shift in storm tracks could still drive significant losses and change the trajectory of current rate trends. In fact, some of the most damaging U.S. landfalls have occurred late in the season.
State-Led Resiliency Initiatives Are Reshaping the Property Risk Landscape
In the meantime, resiliency efforts to mitigate property risks are gaining traction nationwide, with states enacting a variety of laws and regulations designed to strengthen buildings, infrastructure, and communities against natural hazards and climate-related threats. For example, many coastal states have updated building codes to require wind-resistant materials and hurricane-proof construction standards, with Florida’s statewide building code cited as among the strongest for wind and storm resilience.
Massachusetts and others are moving to modernize flood-safe construction in places historically outside designated flood zones, recognizing that flood risk is expanding due to climate change. Additionally, extreme heat and aging building systems are prompting legislation in at least 25 states to upgrade codes and infrastructure for broader hazard mitigation.
In July 2025, the New Jersey Department of Environmental Protection announced amendments to its proposed coastal building rule package to address sea-level rise and construction in flood-risk zones. Meanwhile, in California, the government recently signed an executive order directing a whole-of-government framework to address the insurance and economic impacts of the climate crisis, especially in wildfire- and flood-prone regions.
About Seneca Insurance Company
Seneca Insurance Company is known for its broad appetite for property risks, including apartments and condos, mercantile properties, office buildings, and others. We offer admitted and non-admitted ISO-based policies, with catastrophe perils based on location and risk characteristics.