A softening property and casualty market became clearer in the second half of 2026, as premium decreases across all account sizes accelerated to an average of 2.0% from 1.2% in the first quarter.
The findings, according to The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report for Q2 2026, mark the second consecutive quarter of broad premium reductions across the industry.
Rate relief was felt most significantly by large accounts, which experienced average premium decreases of 3.7% following a 2.7% decrease last quarter.
Medium account decreases held steady at 1.9%, and small accounts decreased slightly, by an average of 0.5%.
Across all lines of business, overall rates contracted by an average of 0.3%, with ten distinct lines posting reductions in Q2: business interruption, commercial property, construction risks, cyber, D&O, employment practices, flood, marine, terrorism, and workers compensation.
As in Q1 2026, commercial property recorded the largest decrease in premiums out of all lines, 6.3%, marking a full year of decreases for the line. Cyber and workers compensation followed, each falling an average of 3.2%, the ninth consecutive quarter of decreases for cyber and the eighteenth for workers compensation.
When evaluating the major lines of business (commercial auto, commercial property, general liability, umbrella, and workers compensation), responses still averaged out to a premium increase, but the increase dropped to 0.4% from 0.8% in the previous quarter.
Upward pricing pressure remained heavily concentrated in casualty lines, with umbrella premiums recording an average rise of 5.3% in Q2 2026, reversing a moderating trend begun in Q2 2025.
According to the report, this was the highest increase out of all lines and was also the 35th consecutive quarter of premium increases for umbrella.
Commercial auto had the next highest increase at 4.5%. The surge in these two lines was heavily interlinked, as nuclear verdicts tied to commercial auto accidents were one of the main sources of difficulty for the umbrella line of business.
Moreover, 40% of respondents noted a decrease in umbrella capacity this quarter. With 75% of respondents noting expanded property catastrophe, an influx of capital drove down renewal costs.
These softer property market conditions benefited insureds in middle and large markets by securing lower renewal costs, reduced deductibles, and increased sublimits.
Survey respondents highlighted that these favourable conditions led to renewal rate declines exceeding 10% for large property accounts, along with a notable downward shift for medium-sized accounts.
Additionally, policyholders gained higher sublimits and lower deductibles, especially regarding wind and hail coverage.
