P C UPDATES 2026 FORECAST
OVERVIEW
The E&S marketplace has recorded 14 consecutive years of premium growth.
Casualty lines now account for the majority of E&S premiums.
The market is characterized by moderate growth, plentiful capacity, and strong underwriting discipline.
Paul G. Smith Group Senior Vice President H.W. Kaufman Group, New York, NY
Social inflation, nuclear verdicts, and litigation funding continue to influence underwriting and pricing decisions, while tort reform in select states is beginning to improve the litigation environment.
Technological advancements—such as CAT modeling, DIY inspections, and Parametric solutions—are reshaping underwriting and risk management. Emerging risks, particularly those related to artificial intelligence (A.I.), are being addressed through evolving policy language, with the E&S market serving as an incubator for new coverages.
CAPACITY RATES
The P&C market is in a period of “measured hardening, ” with disciplined pricing and mostly single-digit rate changes. January 1 reinsurance renewals are expected to result in modest rate reductions.
Capacity remains broadly stable across most P&C verticals, supported by strong global carrier participation.
Capital for non-admitted/specialty P&C risks is at decade-high levels, with reinsurers increasingly supporting E&S platforms.
Carriers continue to closely manage policy language in response to social inflation, litigation funding, and elevated jury awards.
Underwriting discipline is expected to persist, with little near-term easing as carriers focus on sustaining recent progress.
LONDON MARKET UPDATE
PROPERTY
The London Property market continues to soften, with U.S. Property Cat buyers expected to see 15–20% rate reductions in 2026 following a benign catastrophe year. Capacity remains available but more cautious, with slower stamp growth and increased reliance on technology and cross-class facilities to drive efficiency.
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