Q3 2025 State of the Market: Bermuda Professional Lines
Market Update & Emerging Trends
The Bermuda insurance market continues to demonstrate its strategic relevance across multiple specialty lines, with evolving dynamics shaping both underwriting appetite and client engagement. In Q3, we observed insureds increasingly designing programs to retain more risk, capitalizing on Bermuda’s adaptable structures and deep underwriting expertise.
At the same time, the Bermuda market is also evolving to offer bespoke solutions for private equity-backed entities and SPAC-related transactions.
Bermuda remains a preferred jurisdiction for complex risk placements, particularly where its unique advantages in defense cost and indemnification are critical.
Product Line Update
Directors & Officers (D&O)
The D&O market continues its soft trajectory into Q3. Capacity remains robust in the market, though newer players are finding it challenging to gain traction. Internal pricing pressures are leading to carrier push back on the significant rate decreases seen in 2024, contributing to single-digit pricing decreases to flat renewals. Excess layers continue to be priced more competitively than primary placements. While this is the case, there is still oversaturation of capacity in the market which creates an obstacle around pricing.
Securities class action activity remains high, with notable increases in severity. Disclosure Dollar Loss has experienced a 56% year-over-year escalation, while Maximum Dollar Loss has posted a substantial 154% increase, indicating a significant deterioration in loss severity metrics.
Exceptions: Accounts with adverse risk profiles may still experience upward rate adjustments to ensure pricing adequacy.
Underwriting priorities continue to be shaped by ESG considerations, regulatory developments, and economic uncertainty are key factors shaping underwriting decisions. Judicial trends favoring plaintiffs continue to influence pricing and coverage terms.
Employment Practices Liability (EPL)
The EEOC continues to closely examine the use of artificial intelligence in hiring practices, which could lead to heightened claim activity and stricter underwriting.
Starting October 1, 2025, California’s new AI employment regulations officially take effect, marking a major shift in how employers can use artificial intelligence and automated decision systems (ADS) in hiring, promotion, and other employment decisions. New guidance on workplace harassment, pay transparency, and the Pregnant Workers Fairness Act (PWFA) is expected to increase litigation and regulatory scrutiny.
While conditions remain stable, EPL insurers are bracing for potential disruption driven by technological advancements and evolving legal frameworks.
Notable wins
We successfully placed a tower of EPL insurance in Bermuda the largest lending platform in the personal lending landscape, directly connecting borrowers with investors. This global firm is distinguished by its scale, operational reach, and deep industry expertise, demonstrating Bermuda’s ability to deliver solutions for sophisticated clients.
Summary
The third quarter provided indications of a market in transition, with pricing continuing to stabilize after a period of significant softening. While robust capacity remains, increased focus on macroeconomic pressures, regulatory changes, and evolving claims trends continue to shape underwriting strategy, particularly as new technological and legislative factors emerge.
Vernae Outerbridge, Head of Professional Lines
Price Forbes Bermuda
Vernae.Outerbridge@priceforbes.com
T: +1 441 707 0099 | M: +1 441 707 0099