The Baldwin Group, a US independent insurance brokerage and advisory company, has reported that commercial property insurance continues to become more affordable, although businesses should remain cautious as liability-related risks continue to place pressure on casualty insurance markets.
In its Q2 2026 Market Pulse Report, The Baldwin Group said commercial property insurance pricing fell by 8.1% during the second quarter, extending a run of declines that has now lasted five consecutive quarters.
The company said the softer market is providing insurance buyers with greater flexibility to review policy structures and negotiate improved terms. However, it warned that persistent legal and claims-related trends mean lower premiums should not be mistaken for reduced exposure to risk.
According to The Baldwin Group, while pricing growth across casualty lines has slowed, the underlying drivers of claims inflation remain firmly in place.
Factors such as social inflation, nuclear verdicts and third-party litigation funding continue to influence insurer pricing decisions, even as competitive conditions begin to improve in parts of the market. The company said organisations may be able to use savings achieved in property insurance to strengthen other areas of their insurance programmes.
“Property and casualty are creating two very different renewal conversations,” commented Leslie Nylund, National Managing Director of Broking and Insurance Company Partnerships at The Baldwin Group. “Improving property conditions can give businesses more flexibility, but slower casualty pricing increases do not mean the underlying liability environment has become less challenging. Organisations that evaluate each line on its own dynamics and then make decisions across their entire insurance program, will be best positioned to create long-term value.”
The Baldwin Group said increased insurer capacity and stronger competition continued to drive the property market, resulting in an 8.1% reduction in commercial property pricing compared with the same period. The company believes businesses with strong claims histories and well-documented risk profiles may be in a better position to negotiate broader policy cover, restore limits and review deductible arrangements that became more restrictive during the hard insurance market. Insurers, however, remain focused on catastrophe exposure, property valuations and replacement cost calculations.
Commercial motor insurance also showed signs of easing, with pricing increasing by 4.5% during the quarter, compared with 5.7% in the first quarter of the year. The Baldwin Group said this represented the lowest quarterly increase in more than three years. Even so, the company noted that escalating repair costs, driver shortages, nuclear verdicts and a growing number of total-loss claims continue to affect underwriting decisions. Fleet safety measures, telematics and evidence of improved driver behaviour remain important considerations for insurers.
General liability insurance followed a similar pattern, with The Baldwin Group reporting a 4.5% increase in pricing, down from 6.1% in the previous quarter and 9.3% in the final quarter of 2025. The company noted that insurers are becoming more competitive for lower-risk businesses with favourable claims records, although sectors including construction, real estate, healthcare and hospitality continue to attract closer underwriting scrutiny because of their greater exposure to litigation.
The Baldwin Group also recorded a moderation in umbrella insurance pricing, with rates rising by 5.0% during the quarter after increasing by 8.2% in the first three months of 2026. Despite the slower pace of growth, the company said insurers continue to adopt a disciplined approach when assessing attachment points, tower structures and overall exposure, particularly for businesses operating in habitational, healthcare, contracting and fleet-related industries.
Workers’ compensation remained one of the most stable commercial insurance classes, according to The Baldwin Group, with pricing edging down by 0.3%. The company said conditions remain favourable but suggested the market may be approaching a point where further reductions become less likely. Medical inflation, changes in workforce demographics, mental health-related claims and evolving regulation are expected to play a greater role in future underwriting assessments.
The Baldwin Group also highlighted differing trends within financial and cyber insurance. Cyber insurance pricing rose by 0.4%, while private management liability increased by 0.9%. In contrast, pricing for public directors’ and officers’ insurance fell by 1.2%. The company said pricing across these sectors continues to depend heavily on individual business characteristics, financial strength, industry sector and overall risk quality.
“Property pricing relief should not be viewed in isolation,” Nylund added. “It may create opportunities to strengthen protection, address emerging exposures or improve the structure of an overall insurance programme. The objective is to use favourable conditions thoughtfully while remaining disciplined about the risks that continue to drive casualty losses.”
Looking ahead, businesses approaching policy renewals should assess each area of cover on its own merits rather than assuming conditions are improving across the entire commercial insurance market. The company said organisations that begin renewal discussions early, provide high-quality underwriting information and clearly demonstrate effective risk management are likely to be better placed to achieve favourable outcomes.
