Specialty insurance rates soften at faster than expected pace, retreating to 2020 pricing levels, WTW survey finds
Rhea-AI Summary
WTW (WTW) reports specialty insurance rates softened faster than expected in 2025 and at 1 January 2026 renewals, with the SIMS index retreating to 2020 pricing levels. The survey covers about $250 billion of gross written premium (including $45 billion in 2025) and shows a 10-point index decline, a 5% aggregated rate fall gross of claims trend and an 8% decline net of claims trend.
For 1 January 2026 renewals, 75% of 42 material classes showed rate decreases versus 30% in 2024.
AI-generated analysis. Not financial advice.
Positive
- Survey covers approximately $250 billion gross written premium
- $45 billion of premium represented in 2025 data
- SIMS provides client-contributed, insurer-level data for benchmarking
Negative
- 10-point decline in the SIMS insurance rate index to 2020 levels
- Aggregated rates down 5% gross of claims trend
- Aggregated rates down 8% net of claims trend
- 75% of 42 material classes showed rate decreases at 1 Jan 2026
- Pronounced rate decreases in Property and Energy, then Marine and Financial Institutions
News Market Reaction – WTW
On the day this news was published, WTW declined 2.72%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
LONDON, May 06, 2026 (GLOBE NEWSWIRE) -- Specialty insurance market rates declined in 2025 and for 1 January 2026 renewals, with the pace of change exceeding expectations in the published forecasts by both brokers and insurers, according to WTW’s Specialty Insurance Marketplace Survey (SIMS).
The WTW survey reflects around
Based on the SIMS insurance rate index, expected performance (which is net of exposure trends) in 2025 has unwound the rate strengthening gains of the last few years back to levels last seen in 2021. 2025 was the first year since 2018 for which rate adequacy for new business was lower than for renewal business.
Data from 1 January 2026 renewals and new business point to continued rate softening, with a 10-point decline in the insurance rate index, back to 2020 levels.
Richard Clarkson, Global Market Leader, Global Specialty, WTW, said: “Our intention is to provide insights on Specialty market dynamics that hasn’t been possible before – using market derived data to deliver a consistent view of risk adjusted rate change over a large number of classes and key geographies, aligned to how underwriting teams are organised. Our clients already use this to validate business plans, compare current year rating trends, assess impact of new and renewal rate adequacy and support reserving processes.”
For 1 January 2026 renewals,
The findings also highlight the speed of recent market movements. An approximate
The most pronounced rate decreases are in Property and Energy, followed by Marine, Financial Institutions and Professional Liability, reflecting benign catastrophe experience and distorted frequency/severity trends, offset by higher geopolitical tensions.
The general liability and medical malpractice markets are behaving counter-cyclically to the overall insurance markets. Substantial concerns relate to social inflation, nuclear jury verdicts and the expansion of litigation funding in this market. We do not believe this trend is sustainable, but how this might change in the short-term remains uncertain.
Figure 1. Specialty insurance rates across London, Bermuda and the U.S. excess and surplus (E&S) markets declined at a faster than expected pace in 2025.
Source: WTW SIMS Insurance Rate Index
SIMS provides a consistent view of rate movements across specialty markets, allowing carriers to assess how conditions evolve across both new business and renewals. The survey’s detailed segmentation provides a level of result granularity for participants not available elsewhere, with the data highlighting the pace at which market conditions are shifting and support more informed benchmarking and performance management.
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 based on H1 2026 results and the July renewal. Please reach out if you would like to participate.
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
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5fd00a48-e9de-484a-b890-bde7823cbd38
