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Commercial insurance premium growth slows to near flat in 2026
Alera Group said average commercial insurance premiums rose 0.2% in the first half of 2026, the most favourable trading environment since 2017.
Alera Group said conditions in the commercial property and casualty insurance market have become more favourable, pointing to improved insurer profitability, stronger competition, and slower premium growth after years of difficult trading.
In its 2026 Property and Casualty Midyear Market Update, the firm reported that average commercial insurance premium increases were broadly flat during the first six months of 2026, up just 0.2%. It said this represents the most favourable trading environment it has seen since 2017, supported by healthier insurer finances, greater stability in the reinsurance market, and insurers taking on more new business.
Alera Group said the shift is giving many organisations greater leverage at renewal, including potential for more competitive pricing and enhanced policy terms. It also noted that commercial property insurance is among the strongest-performing areas, with increased underwriting capacity and heightened competition improving conditions for policyholders.
The update also highlighted that not every segment is improving at the same pace. Alera Group said casualty classes continue to face pricing pressure, even as insurers show greater willingness to compete for high quality accounts and, in some cases, offer wider cover and greater flexibility over policy wording.