As we wrap up 2025, we wanted to share a snapshot of what we’re seeing across the commercial insurance landscape — the trends, the opportunities, and what to expect as we head into 2026. To keep it real: things are changing fast, but there’s reason to stay optimistic heading into the new year.
????️ Overall Market Vibe: Softening with Pockets of Tension
Across many commercial markets, we’re seeing continued softening, especially in property and certain professional lines. Carriers and MGAs have added capacity in multiple classes, which means more competition and more favorable pricing for insureds in many sectors. Renewals that might’ve been tough just a couple of years ago are now seeing flat to modest rate changes, particularly in lines where losses haven’t ballooned. Amwins ( click to view)
That said — it’s not all smooth sailing. Some segments (particularly liability/casualty driven risk) are still facing higher litigation-driven claims costs and tighter underwriting appetite, which can keep rates firm or rising.
???? Property Insurance
✔️ Capacity remains abundant across most regions, good news for Texans that means we are optimistic that in 2026 we should continue to see improvements.
✔️ Competition is strong — many carriers are back in markets they pulled out of, and are coming back in swinging.
✔️ Pricing is generally “flat to lower” in many areas, and terms are loosening (lower deductibles, broader wording). Amwins (click to view)
Takeaway: If your risk profile is clean and you’re proactive with valuation and CAT exposure planning, this remains a buyer-friendly environment. That said, weather-driven risks and CAT-exposed locations still require careful planning and strong submissions to see improvements.
???? Casualty & Liability
This remains one of the trickier areas:
⚠️ Legal costs and social inflation continue to pressure insurers, especially in GL, auto, and excess layers.
General Liability: The market continues to struggle with inflated losses due to litigation and settlements causing carriers to tighten their target market and appetite.
Auto Liability: HAVE YOU SEEN WHAT NEW CARS COST??? Goodness gracious, not to mention the crazy personal injury lawyers…. I think this one goes unsaid. Just get you & your crew a dash camera, and do your best to drive defensively.
Excess Liability: This one is just a direct reflection of the prior two (GL & Auto) if those two are struggling, then this one will mirror what their markets are experiencing – so in short, it’s not the worst – but it is getting tougher by the day
⚠️ Some markets have tightened capacity in higher-severity classes – so if this is you, please be thorough when preparing for your renewal or placement
➡️ Many carriers are targeting moderate rate increases in 2026 to balance emerging loss trends – this is their news not mine, please do not shoot the (honest) messenger. Amwins (click to view)
Takeaway: Coverage placement still requires thoughtful strategy and strong submissions — don’t just rely on pricing alone as coverage forms are getting more important as carriers look to shed liability and retain business.
???? Final Quick Hits
???? Positive trend: Many lines are more competitive than we’ve seen in years – granted, let’s be real that is a pretty low bar.
???? Caution flag: Some casualty lines and complex risks still demand experience and strategy – please help us help you, if the carrier is requiring additional data, it is so that we can help secure improved terms!
???? 2026 outlook: Cautious optimism — carriers are balancing profitability with portfolio growth, and the right risk profiles are being rewarded. For well-run businesses with good loss history, this is one of the more favorable environments we’ve seen in many years.
If you have questions about how these trends specifically impact your business or want help navigating renewals in early 2026, we’re here for you. Thanks for trusting Ark Insurance Agency — we appreciate the opportunity to serve you.
Merry Christmas & Happy Holidays
– The Ark Insurance Agency Team
