Specialty insurance rate softening accelerates

By July 2026, around 65% of the insurance rate-strengthening gains accumulated between 2017 and the 2023 market peak had been eroded.

Rhea-AI Summary

WTW (WTW) published survey findings showing specialty insurance rate reductions accelerated in the first half of 2026 and at July renewals. Insurance and reinsurance rates each declined 4% gross of trend and 6% net of trend in the first six months. At the 1 July insurance renewals, rates fell 6% gross and 9% net, with property down 17% net of trend.

All 15 material insurance and reinsurance classes recorded net-of-claims-trend decreases in the first half. The survey uses insurer-owned data from participating WTW clients across London, Bermuda and U.S. excess and surplus markets, covering approximately $300 billion in gross written premium over a 10-year cycle.

News Explained

By July 2026, around 65% of specialty-rate gains from 2017 to the 2023 peak had been erased.

WTW’s survey reports that at the July 2026 renewals, casualty rates rose 6%, below the estimated 8% claims trend, leaving an effective 2% rate reduction.

The survey says specialty rates gained approximately 50% net of claims and exposure trend from 2017 to the 2023 market peak; by July 2026, around 65% of those gains had been erased.

Key Figures

Insurance rates, gross of trend: 4% Insurance and reinsurance rates, net of trend: 6% Rates, gross of trend: 6% +5 more

Insurance rates, gross of trend

4%

First half of 2026

Insurance and reinsurance rates, net of trend

6%

First half of 2026

Rates, gross of trend

6%

1 July 2026 renewals

Rates, net of trend

9%

1 July 2026 renewals

Property rates

17% decline

Net of trend at 1 July 2026 renewals

Casualty rate increase

6%

1 July 2026 renewals

Casualty claims trend

8%

In excess of exposure trend

Effective casualty rate reduction

2%

At 1 July 2026 renewals

Key Terms

gross written premium, reinsurance, excess and surplus (e&s), rate adequacy

4 terms

gross written premium financial

"approximately $300 billion in gross written premium over a 10-year cycle"

Gross written premium is the total value of insurance policies a company has sold during a period, measured before any cancellations, refunds or transfers to other insurers are taken out. Think of it as the company’s topline sales number for insurance, like a store reporting total receipts before returns — it shows scale and sales momentum and helps investors gauge growth, market share and potential exposure to claims.

reinsurance technical

"both insurance and reinsurance rates declined by 4% gross of trend"

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

excess and surplus (e&s) technical

"the London, Bermuda and U.S. excess and surplus (E&S) markets"

Excess and surplus (E&S), also called surplus lines, is the segment of the property and casualty insurance market that writes risks standard insurers will not cover because they are unusual, high-risk, or lack approved policy forms or rates. E&S insurers are typically nonadmitted in the state where the risk is located, so they are exempt from state-required policy form and rate filings; placement usually requires a licensed surplus lines broker and adherence to surplus-lines rules. A key limitation is that policies written by E&S insurers generally are not covered by state guaranty funds and therefore do not carry the same insolvency protections available for admitted-market policies.

rate adequacy technical

"continuing concerns about rate adequacy in the class"

An assessment of whether a charged rate — commonly an insurance premium, utility tariff, or other recurring fee set by a regulated or commercial provider — is high enough to cover the expected cost of providing the service (claims or liabilities, operating expenses, and taxes) and to achieve any required or targeted margin. Rate adequacy is typically determined by projecting future costs and revenues using actuarial or financial models; it is forward‑looking and depends on assumptions about claims frequency/severity, loss development, expense levels, interest yields and regulatory requirements, so the conclusion can change as those assumptions change.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LONDON, Oct. 27, 2026 (GLOBE NEWSWIRE) -- Specialty insurance market rates fell sharply in the first half of 2026 and for the 1 July renewals, generally exceeding the rate reductions in 2025, according to WTW’s Specialty Insurance Marketplace Survey (SIMS). This has led to decreases of up to 17% net of claims and exposure trend as reductions.

In the first six months of 2026, both insurance and reinsurance rates declined by 4% gross of trend and 6% net of trend. Insurance softened at approximately twice the pace in 2025, while reinsurance softened three to four times faster, marking a clear acceleration in weaker rating conditions.

Between 2017 and the market peak in 2023, rates net of claims and exposure trend increased by approximately 50% cumulatively. By July 2026, around 65% of these rate-strengthening gains had been eroded, according to the SIMS insurance rate index.

The survey draws on approximately $300 billion in gross written premium over a 10-year cycle, including $50 billion in 2025 and $29 billion in the first half of 2026. It covers specialty insurers operating in the London, Bermuda and U.S. excess and surplus (E&S) markets. Unlike surveys based on broker-derived data, SIMS relies exclusively on insurer-owned data provided by participating clients of WTW’s Insurance Consulting and Technology business.

Richard Clarkson, Global Market Leader, Global Specialty, WTW, said: “SIMS uniquely captures both 1 January and 1 July renewals, providing the market with granular insights. Insurance rate movements in the first half of 2026 were broadly consistent with the 1 January renewals, with a decline of 4% gross of trend compared with 5%. Against this backdrop, the 1 July results point to accelerating softening, with rates down 6% gross and 9% net. Rate movements across most individual classes also show no slowdown.”

Beneath the headline figures, individual markets follow different insurance cycles. Property showed the steepest declines, with rates down 17% net of trend at the 1 July renewals as softening accelerated from 2025. Energy and Financial and Professional Liability (FinPro) recorded high-single-digit reductions net of trend, although early signs of stabilisation emerged in U.S. FinPro. Marine declined by mid-single digits, while Aviation and Accident & Health posted low-single-digit reductions.

In Casualty, rate increases of 6% at the 1 July renewals are no longer sufficient to offset the estimated claims trend of 8% (in excess of exposure trend), resulting in an effective 2% rate reduction. This was not yet evident in the 1 January renewal data and is significant given continuing concerns about rate adequacy in the class.

In the first half of 2026, all 15 material insurance and reinsurance classes recorded net-of-claims-trend rate decreases.

The reported figures represent the survey participants’ latest view of claims trend for all years, thus providing an up-to-date picture of the full cycle.

SIMS uses market-derived data to provide a consistent view of risk-adjusted rate changes across specialty classes and key geographies. WTW clients use these insights to validate business plans, compare pricing trends, assess rate adequacy for new and renewal business, support reserving, and strengthen benchmarking and performance management.

Notes to Editors

About the Specialty Insurance Marketplace Survey (SIMS)
The Specialty Insurance Marketplace Survey (SIMS) is a survey dedicated to insurers who underwrite specialty, high volatility and complex (re)insurance in the London, Bermuda and US E&S insurance and reinsurance markets. WTW publishes SIMS twice yearly, with the next update covering results for the second half of 2026 and 1 January 2027 renewals.

About Insurance Consulting and Technology
WTW’s Insurance Consulting and Technology business is a global leader in P&C, Life, and Health insurance software and advisory services. With over 1,700 colleagues in 35 markets, we combine deep insurance expertise with leading-edge technology to help insurers navigate complexity and unlock value across pricing, underwriting, reserving, financial and capital modelling, claims, portfolio management, and regulatory reporting.

We’re redefining insurance through innovation and technology. By harnessing Generative and Agentic AI, we’re creating next-generation processes that reduce friction, enhance decision-making, and unlock faster, smarter outcomes for our clients. These capabilities accelerate innovation and enable us to deliver with precision and scale.

More than 1,000 insurers across six continents - including many of the world’s leading insurance groups - trust our unique combination of advisory insight and advanced software to help power their businesses and drive sustainable growth.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

Learn more at wtwco.com.

Media contact
Andrew Collis   | andrew@acolliscommunications.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did WTW's specialty insurance survey show about rates in the first half of 2026?

Insurance and reinsurance rates each fell 4% gross of trend and 6% net of trend in the first half of 2026. Insurance softened at approximately twice the pace in 2025, while reinsurance softened three to four times faster.

How did casualty insurance rates compare with claims trends in WTW's July 2026 survey?

Casualty rate increases of 6% at the 1 July renewals fell short of the estimated claims trend of 8%, in excess of exposure trend, resulting in an effective 2% rate reduction. This shortfall was not yet evident in the 1 January renewal data.