Navigating the world of insurance rates can feel a bit like watching the tides, but we’re here to help you make sense of the latest Property & Casualty (P&C) trends so you can feel confident about your coverage.
As the year closes, the P&C market sees intensified competition and capital influx in certain areas, yet critical caution remains in place for property and specific casualty lines. Here’s a summary of what to anticipate for your year-end renewals and heading into 2026.
Property & Homeowners: The Valuation Imperative
Heading into the renewal season of January 1, 2026, the property market’s focus shifts from active hurricane risk to property valuation and catastrophe reserving.
- Valuation: Insurers are aggressively scrutinizing replacement cost estimates to ensure clients are not underinsured. With construction inflation remaining a persistent factor, policies that do not accurately reflect current rebuilding costs will face mandatory increases [Swiss Re Institute].
- The Market: While the market is experiencing an influx of capital and increased competition nationally for low-risk accounts, high-risk areas—like the Gulf Coast—will continue to see firm pricing and selective underwriting [Gallagher]. Clients demonstrating robust risk mitigation efforts and recent roof updates are typically positioned for the most favorable outcomes.
Casualty Lines: The Hardening Continues
The pressure on casualty lines, driven primarily by long-tail liabilities, shows no signs of letting up as the industry aims to achieve rate adequacy heading into the new year.
- Commercial Auto: This remains the most challenging line. Due to high-severity claims, social inflation, and rising repair costs for complex vehicle technology, Commercial Auto continues to see firm upward rate pressure [WTW].
- General & Excess Liability: Social Inflation (large jury verdicts) is forcing carriers to maintain disciplined pricing, particularly in the umbrella and excess liability towers. Carriers are seeking increased attachment points and firming rates, often in the mid-to-high single digits, to protect against shock losses [CIAB].
- Workers’ Compensation: This remains the stable exception in the market. Healthy underwriting performance and reduced claim frequency continue to keep this market favorable for employers, who can often achieve flat renewals or slight rate decreases [NCCI].
Key Takeaway for December
The central theme for December is finalizing documentation and ensuring accuracy. This is the critical window to discuss property replacement cost valuation and explore higher deductibles to manage premium costs. Proactive communication with your broker now ensures your policy reflects your assets correctly before the busy January renewal season begins.
At Parkway Insurance Group, we believe caring makes the difference by helping you secure the right protection for the year ahead.
Sources and Industry References
The insights provided are compiled from the following industry-leading reports and organizations:
- Swiss Re Institute: Global analysis and reporting on the financial impact of natural catastrophes and replacement cost trends. Source Link
- Gallagher: Global brokerage reports detailing national market capacity and property pricing trends. Source Link
- WTW (Willis Towers Watson): Reports on commercial insurance trends and pricing realities for casualty lines. Source Link
- CIAB (Council of Insurance Agents & Brokers): Quarterly reports detailing pricing and market capacity in commercial casualty lines. Source Link
- NCCI (National Council on Compensation Insurance): Provides key data and trends related to the stability and pricing of Workers’ Compensation. Source Link
