Specialty Insurance Rate Declines Accelerate in 2026

Specialty insurance and reinsurance rates declined at an accelerating pace during the first half of 2026, with reductions at July 1 renewals generally exceeding those recorded in 2025, according to WTW's Specialty Insurance Marketplace Survey (SIMS).

Insurance and reinsurance rates fell 4 percent gross of claims and exposure trend and 6 percent net of trend during the first 6 months of 2026. Insurance rates softened at approximately twice the pace recorded in 2025, while reinsurance rates declined 3–4 times faster.

The survey found that approximately 65 percent of the cumulative rate increases recorded between 2017 and the market peak in 2023 had been eroded by July 2026. During that earlier period, rates increased approximately 50 percent cumulatively, net of claims and exposure trend.

WTW's findings are based on approximately $300 billion in gross written premium over a 10-year period, including $50 billion in 2025 and $29 billion during the first half of 2026. The survey uses insurer-owned data from participating clients in the London, Bermuda, and US excess and surplus markets rather than broker-derived information.

Richard Clarkson, global market leader, global specialty at WTW, said insurance rate reductions during the first half of 2026 were broadly consistent with January 1 renewals, when rates declined 5 percent gross of trend. However, July 1 renewals showed further softening, with rates falling 6 percent gross of trend and 9 percent net of trend. Most individual insurance classes showed no slowdown in rate reductions.

Property insurance experienced the steepest declines, with rates falling 17 percent net of trend at July 1 renewals as market softening accelerated from 2025.

Energy and financial and professional liability (FINEX) recorded high-single-digit rate reductions net of trend, although early indications of stabilization emerged in US FINEX. Marine rates declined by mid-single digits, while aviation and accident and health experienced low-single-digit reductions.

Casualty insurance also showed signs of deteriorating rate adequacy. Although nominal rates increased 6 percent at July 1 renewals, those increases were insufficient to offset an estimated claims trend of 8 percent above exposure trend, producing an effective rate reduction of 2 percent.

The development was not evident in January 1 renewal data and comes amid continuing concerns about casualty rate adequacy.

All 15 material insurance and reinsurance classes tracked by the survey recorded rate decreases net of claims trend during the first half of 2026.

WTW publishes SIMS twice annually, using insurer-reported data to assess risk-adjusted pricing movements across specialty insurance classes and geographic markets. The next survey will cover the second half of 2026 and January 1, 2027, renewals.