After several turbulent years, the commercial property and casualty insurance market is entering a period of renewed stability. Despite early-year catastrophe losses, underwriting performance strengthened through 2025, and carriers are approaching 2026 on firmer financial ground.
For brokers, that stability brings welcome change. Renewal discussions are becoming more consistent, client expectations are easier to manage, and new opportunities are emerging in both admitted and excess and surplus (E&S) markets. The outlook for 2026 is defined less by reaction and recovery and more by readiness, creating an opportunity to grow, adapt, and compete with greater confidence.
Current State of the P&C Market
The 2025 results show a market moving from survival to steadiness. After several years of rate hikes and restricted capacity, carriers are again reporting solid profitability.
S&P Global reports that the U.S. P&C industry achieved its best second-quarter combined ratio in nearly two decades, evidence that disciplined pricing and underwriting restraint are restoring equilibrium across the market. Deloitte’s midyear outlook points to a slowing rate of momentum through 2026, indicating that competition is returning and pricing is starting to favor insureds.
Several forces are shaping this new balance. Catastrophe activity has eased compared to prior years. When events do occur, the industry is managing them with greater resilience. Inflation and supply chain pressures continue to influence claims costs, but the sharpest spikes appear to be behind us. Rising investment income is also giving carriers more flexibility to absorb volatility and sustain profitability.
For brokers, the market feels noticeably different. The intensity of the hard market is fading, renewals are becoming more predictable, and capacity is opening. Coverage terms are leveling out, and clients are seeing a return to consistency. Across the industry, optimism is emerging as brokers regain the space to focus on strategy, relationships, and long-term positioning rather than constant rate defense.
Market Shifts and Broker Implications
The numbers point to a market that’s beginning to loosen. Rates are steadying, and competitive pressure is quietly returning. Deloitte reports a slower rate momentum across several commercial lines, while S&P Global highlights modest premium growth and small increases in combined ratios. Together, these shifts suggest that carriers are widening their appetite and re-engaging in new business after several restrained years.
For brokers, this signals a meaningful change. Capacity is coming back, and underwriting conversations are opening up in ways that reward preparation and judgment. The real advantage now lies in discernment. With more markets willing to quote, brokers can focus on matching carrier appetite, coverage quality, and client needs with precision.
It’s also an environment built for innovation. Alternative capital and insurance-linked securities are expanding how risk is shared, while AI and analytics are improving speed, accuracy, and visibility throughout the placement process. Brokers who use these tools with intention will set the pace for responsiveness and insight in the year ahead.
To stay competitive:
- Lead with understanding, not reaction. Explain the “why” behind pricing stability, and help clients plan with confidence.
- Build depth, not breadth. Specialization strengthens credibility and client loyalty.
- Maintain disciplined submissions. Clean data keeps carriers engaged and cycles efficient.
- Protect strong partnerships. Consistency and profitability today build leverage for tomorrow.
The Role of Excess and Surplus Insurance
Even as the admitted market steadies, the role of E&S insurance remains vital. Many of the same forces that shaped the hard market, including CAT exposure, valuation accuracy, and evolving risk complexity, continue to drive business into E&S channels. The difference now is choice. Brokers can approach the E&S market not as a last resort, but as a place for tailored solutions and speed.
E&S carriers have become more sophisticated partners, often equipped with the data agility and underwriting flexibility to handle risks that fall outside the boundaries of standard forms. For brokers, this flexibility creates opportunity: to craft layered programs, to meet unique client needs, and to compete more effectively in niche markets.
The key, however, is precision. E&S markets reward clean submissions, accurate data, and complete underwriting narratives. As capacity returns, carriers have options, and the brokers who submit clear, comprehensive information will move to the front of the line. That discipline, combined with the speed and creativity of E&S placement, positions brokers to navigate both sides of the market with confidence.
Preparing for 2026: Opportunities Ahead
The balance emerging in 2025 sets the stage for brokers to lead again. As volatility settles, the industry’s attention is shifting from defense to direction. This is the moment to step back, assess what’s changed, and build strategies that work in a steadier market.
New industries and risk classes are redefining demand. Renewable energy, life sciences, cyber resilience, and shared mobility each bring fresh challenges and room for brokers who understand their nuances. Those who dig in now, learn these spaces, and build the right carrier relationships will be the ones writing the next growth story.
Technology is playing a role in accelerating that shift. Predictive analytics and AI-assisted tools are moving from pilot programs to daily practice, speeding up submissions and strengthening insight. Brokers who blend digital agility with thoughtful, informed guidance will earn lasting trust by helping clients realize the full value of their coverage, manage costs, and move through renewals without the friction that can make clients resistant to the technology.
After years of volatility, the market feels ready to move forward. The discipline of the hard market strengthened the system. The softening now unfolding rewards adaptability. Brokers who use this moment to refine portfolios, align with stable partners, and pursue growth intentionally will find 2026 full of possibilities.
Cochrane & Company continues to support that momentum. With nationwide expertise in the E&S market and a shared commitment to broker success, we’re here to help you strengthen your position and seize new opportunities with confidence and clarity.
Let’s Connect
With capacity expanding and rates stabilizing, strategic placements matter more than ever. Connect with a Cochrane & Company underwriter to identify opportunities, streamline submissions, strengthen your market position, and prepare for 2026 with clarity and confidence.
FAQ About Property & Casualty Insurance in 2026
What is the current state of the insurance market?
The market has largely stabilized after several volatile years. Rates have leveled in many commercial lines, and underwriting results have improved thanks to past corrective pricing and lower catastrophe losses.
Is the P&C market softening?
Yes, early indicators point to a gradual softening. Competition among carriers is increasing, rate momentum is slowing, and brokers are gaining more leverage in placement, particularly for well-performing accounts.
How will underwriting discipline affect brokers in 2026?
Carriers are still maintaining selective underwriting, especially in high-risk or CAT-exposed classes. Brokers who provide clean, complete data and strong risk narratives will continue to have the advantage.
What role does excess and surplus insurance play now?
E&S markets remain essential for hard-to-place or emerging risks. Brokers rely on these markets for flexibility and capacity, especially as new exposures like climate resilience and tech-driven risk evolve.
Where are the growth opportunities for brokers?
Specialized industries, technology integration, and strategic E&S partnerships represent the most promising areas. Brokers who invest in expertise and efficiency will find 2026 a year of strong opportunity.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.