Commercial Insurance Rates Soften as Capacity Increases, Brown & Brown Report Finds
Event summary
- Brown & Brown released its 2026 Market Trends Report on February 11, 2026.
- The report indicates a softening of commercial insurance rates due to heightened carrier competition and increased capacity.
- The report incorporates insights from Brown & Brown and Risk Strategies following Brown & Brown’s 2025 acquisition of Risk Strategies.
- Specific sectors like transportation and hospitality are facing less favorable market dynamics.
- The report highlights challenges in personal insurance due to climate volatility and regulatory changes.
The big picture
The softening commercial insurance rates represent a shift from the hard market conditions of recent years, driven by an influx of capital and increased competition. Brown & Brown’s acquisition of Risk Strategies provides a broader perspective on these trends, suggesting a more nuanced market than previously understood. This dynamic underscores the importance of proactive risk management and careful renewal planning for businesses across various sectors.
What we're watching
- Competitive Landscape
- Increased carrier competition may lead to a race to the bottom on pricing, potentially impacting carrier profitability and underwriting standards in the long term.
- Climate Impact
- The continued volatility of climate-related events will likely exacerbate pricing pressure in catastrophe-exposed regions, forcing further adjustments to underwriting practices and risk transfer solutions.
- Digital Adoption
- The pace at which employers fully integrate digital health tools into their benefits packages will determine the effectiveness of cost management strategies and employee engagement.
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