2026 MARKET TRENDS

Excess & Surplus (E&S)

Key Takeaways

Demand for E&S solutions continues to grow as admitted carriers retreat from wildfire, coastal and flood-exposed regions
Competition is returning for lower-risk, well-mitigated accounts, creating selective opportunities for improved terms
Catastrophe-exposed and high-hazard properties face the most restrictive conditions, including higher deductibles and limited capacity
Inflation, rising rebuild costs and elevated reinsurance rates continue to keep upward pressure on pricing across property lines
Climate volatility and severe-weather events continue to influence underwriting and market appetite, especially for high-value homes and multi-location portfolios

Capacity is available, but it is increasingly selective, meaning disciplined submissions, clear property details, mitigation proof and strategic layering across carriers are essential.

Market Conditions

The E&S market heading into 2026 remains moderately hard but is showing early signs of selective softening. Conditions have improved from the peak hard-market years of 2020–2023, yet high-hazard, high-value and complex personal exposures — common within high-net-worth portfolios — still face tougher pricing, narrower terms and stricter underwriting. While competition is returning for lower-risk placements, the gap between “easy” and “difficult” risks remains pronounced.

Admitted carriers continue to scale back capacity in high-risk regions, particularly in wildfire-prone California, coastal hurricane zones and properties with elevated flood exposure. This shift keeps the E&S marketplace central to achieving sufficient limits and creating tailored coverage strategies for HNW customers.

At the same time, slowing premium growth suggests that the extreme hardening of prior years is easing. Well-mitigated risks with strong documentation, clean histories and proactive planning may see more favorable outcomes. Capacity is available, but it is increasingly selective, meaning disciplined submissions, clear property details, mitigation proof and strategic layering across carriers are essential.

Growing competition for lower-hazard, well-managed risks as certain carriers signal early normalization

Persistent challenges for catastrophe-exposed and high-hazard properties, where deductibles, capacity limitations and strict underwriting remain the norm

Rising repair costs, inflation and reinsurance pressures continue to affect pricing and appetite

Heightened impact of severe-weather events, especially across high-value property and multi-location HNW portfolios

Ongoing caution in the admitted marketplace, driving more specialty and non-standard risks into E&S channels

Impacts & Customer Considerations

With underwriting scrutiny elevated across the E&S market, customers should anticipate a more rigorous review of property conditions, mitigation efforts and portfolio complexity when structuring their programs.

High-value homes in wildfire, coastal hurricane and flood-prone regions often require E&S solutions to achieve adequate protection

Specialty assets — such as luxury autos, collections, yachts, aircraft and architecturally complex homes — frequently fall outside the appetite of admitted markets and may require E&S placement to secure comprehensive coverage

Households seeking higher-limit umbrella programs may find the most viable solutions in the E&S market, particularly as liability severity continues to rise

Customers with multiple homes across states or those with intricate global profiles benefit from the flexibility and customization available through E&S structures

While market relief is emerging selectively, customers with strong mitigation, updated documentation and complete, well-prepared submissions continue to achieve the best outcomes

Download this report

Go to Commercial Insurance Report

Go to Employee Benefits Report

Ready to find your solutions?

Let's chat

Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.