2026 MARKET TRENDS

Property

Key Takeaways

Property insurance market conditions continue to soften, with widespread rate decreases and increased capacity available for most buyers
Carriers are competing aggressively for new business, leading to favorable renewals and improved terms, though wildfire-exposed risks, habitational and frame construction risks remain challenging
Organizations should document capital improvement plans and compile detailed data early to help maximize renewal outcomes in this favorable environment

Rate decreases have become the norm for most insureds and are often accompanied by improved terms and conditions.

Overview

Property market conditions continue to favor most buyers, as new capacity enters the market and established markets expand their offerings. Rate decreases have become the norm for most insureds and are often accompanied by improved terms and conditions. Underwriters are actively working to retain profitable accounts by offering favorable renewal indications, which helps keep these accounts out of the broader market. Increased competition is driving carriers to aggressively pursue new business, presenting opportunities for buyers to secure better coverage. However, while the overall market is softening, wildfire coverage remains a distinct challenge for accounts that are exposed to this risk.

Market Conditions

The property insurance marketplace is experiencing notable improvements, driven by shifts in capacity, competition and market dynamics. Increased participation from admitted carriers, Excess and Surplus (E&S) markets, coupled with stabilized reinsurance renewals, has created a more confident and competitive environment. Additionally, fewer catastrophic events in recent years have contributed to improved loss ratios, easing pricing pressures. As the market evolves, several key trends and factors are shaping the current landscape:

More admitted carriers are entering or expanding within property lines, along with continued interest from E&S markets, as stabilized reinsurance renewals enable carriers to deploy capacity with greater confidence.

Carriers, especially in wholesale and E&S segments, are aggressively competing by cutting rates to compete for market share, with current decreases reflecting a normalization of 2020–2022 rate inflation rather than long-term softening.

Strong investment returns and a favorable interest rate environment enable carriers to tolerate lower underwriting margins while maintaining profitability beyond underwriting results.

Improved risk modeling and mitigation measures, such as wildfire prevention and flood controls, combined with data-driven underwriting that enables more precise pricing, are reducing perceived exposure and further supporting the softening trend.

Capitalization and underwriting discipline remain critical drivers in the market, with carriers emphasizing insurance to value by aligning valuations with construction indexes instead of enforcing immediate corrections.

Ample capacity drives competition, especially for high-quality risks, resulting in rate decreases, greater flexibility in terms and coverage.

Insurance to value remains a concern, with most underwriters now accepting a 1% trend in building and personal property values, while accounts with high wildfire scores continue to face rate increases and difficulties in securing cost-effective capacity.

Rate Outlook

Impacts & Considerations

Barring a major catastrophe, the property insurance soft market is expected to continue in 2026, benefiting buyers while emphasizing disciplined underwriting. To capitalize on these trends and enhance renewals, customers should consider the following:

Document capital improvements

Clearly document all capital improvement plans to demonstrate proactive risk management.

Address recommendations

Tackle human element and low-cost risk improvement recommendations, provide responses to outstanding property recommendations, including estimated timelines and costs to complete.

Start early

Develop a strategy and begin the renewal process 90 to 120 days in advance, providing renewal exposures early to give underwriters additional time to review and quote.

Compile data

Gather detailed construction, occupancy, protection, exposure (COPE) data, including recent upgrades.

Lock in multi-year programs

Secure two or three-year deals to stabilize pricing and capitalization on the current soft market.

Optimize retentions

Adjust deductibles strategically to lower premiums without sacrificing coverage.

Diversify and build relationships

Maintain flexibility by engaging both admitted and E&S markets to leverage long-term relationships, minimize drastic fluctuations and strengthen connections through in-person meetings with underwriter.

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