P C UPDATES
2026
OVERVIEW
The P&C market is stabilizing, with softening conditions and increasing competition, though conditions remain sensitive to CAT losses.
Rates are moderating as carrier capacity expands across most lines.
Underwriting discipline remains, with a focus on risk quality and well-structured submissions.
he E&S market continues to expand, upported by strong capacity and ncreasing demand for flexible, ustomized coverage solutions enabled y freedom of rate and form.
aul G. Smith roup Senior Vice President .W. Kaufman Group
ew
York, NY
CAPACITY RATES
Property rates are decreasing, driven by profitability and a relatively mild CAT environment over the past two years.
Casualty rates are stabilizing, with continued variability by class, jurisdiction, and loss experience.
Professional Liability remains competitive, though early signs of firming are emerging as loss severity increases.
Strong capacity across most sectors, supported by healthy balance sheets.
Increased competition is expanding options for wellmanaged risks.
The E&S market continues to play a critical role for complex and hard-to-place risks.
TERMS & CONDITIONS
Terms remain disciplined, especially in CAT-exposed and higher-risk segments.
Some flexibility is emerging in deductibles and coverage structures.
Exclusions, sublimits, and manuscript wording continue to vary by risk.
Careful review of policy language is critical to ensure proper coverage alignment.
KEY MARKET DRIVERS
CAT activity remains a key wildcard, capable of quickly shifting pricing and capacity.
Carrier competition is increasing, including selective re-entry into certain segments.
Social inflation and litigation trends continue to pressure Casualty lines.
AI and automation are improving underwriting speed and efficiency.
Growth in parametric and global access are expanding options.
TIPS FOR BROKERS
on increased competition to rms for well-performing
risk quality, controls, and bmissions to secure optimal
overage structure carefully, nd wording vary across &S and global markets for igh-limit, and non-standard
