As the property and casualty insurance market moves into 2026, brokers are noticing softer pricing in some areas, but the overall picture remains mixed and complicated. Justin Foa, a leader at Alera Group, says the market isn’t simply getting easier across the board. Instead, there are clear differences depending on the type of risk and recent claims history.
According to the Swiss Re Institute, direct premiums written in the U.S. P&C sector are expected to increase by 5% in 2025 before slowing to a 4% rise in 2026. This slowdown reflects lower pricing pressure and more competition among insurers.
Foa points out that certain construction projects and property risks are enjoying more capacity and lower rates. Meanwhile, risks tied to recent losses or exposure to natural disasters like wildfires are still seeing stricter underwriting and higher costs. For example, areas hit by California wildfires remain tough for insurers willing to write coverage.
On the commercial property side, new capital is coming in because investors and insurers have seen good profits from recent results. This means rates are dropping for well-running accounts, and that trend may continue. However, clients with a history of claims must still face tight scrutiny.
Foa also notes that brokers should help clients understand where rate decreases are real and where pricing pressures remain. He warns against frequent remarketing, which can hurt a client’s reputation with insurers if it doesn’t lead to clear benefits. Instead, brokers need to balance the cost and risks of shopping the market.
A newer trend is mid-market clients commissioning independent risk and loss-control surveys instead of relying only on insurer inspections. This approach helps clients highlight their strong safety and valuation practices to more insurers, making them more competitive without repeated site visits.
Underwriting standards are staying tough. Insurers are checking broker-submitted information more closely, using tools like drone footage and detailed valuation databases. On the liability side, high-risk sectors with heavy litigation and social inflation still face a hard market. But other areas like management and cyber liability are seeing softer pricing.
Commercial auto remains challenging, with ongoing rate increases driven by claims severity and legal issues. Foa advises clients to invest in good safety programs and keep thorough records. Risks that show a real commitment to safety attract better terms.
Capacity has pulled back in umbrella and excess insurance, pushing brokers to be more creative in layering coverage. This careful approach aims to provide solid protection without overspending.
For brokers working with retail clients, Foa’s advice is to focus on each client’s unique situation. Understanding strengths and weaknesses helps create coverage plans that are both competitive and cost-effective. He emphasizes clear communication with clients throughout the renewal process to explore options thoughtfully.
In short, 2026 looks like a year of mixed conditions in the P&C insurance market. Brokers and clients who pay attention to details and adapt to different risk profiles will be best positioned for success.