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Commercial P&C premiums grow only 0.2% in early 2026
Alera Group links the cooling in pricing to stabilized reinsurance costs, healthy insurer balance sheets, and capital surplus at a record high.
Commercial property and casualty insurance pricing is easing, with average overall premium growth across commercial P&C lines flattening to 0.2% in the first half of 2026, marking the softest conditions since 2017, according to Alera Group.
Risk & Insurance reports that Alera Group’s 2026 Property and Casualty Market Update points to lower pricing, more flexibility in underwriting terms, and broader insurer appetite, including for businesses that had previously been declined coverage.
Alera Group attributes the shift to strong sector financials, citing stabilized reinsurance pricing and limits, healthy balance sheets, and capital surplus at a record high. The report forecasts insurer returns in the 10.0% to 12.0% range and keeps combined ratios below 100.
Looking ahead, Alera Group forecasts commercial property rates will fall 4.0% on average, with rate reductions for sought-after policies typically landing between 10.0% and 30.0%, and it expects a mild 2026 hurricane season to support that direction. The update also says directors and officers liability rates are down 3.0% for private companies and 6.0% for public companies, while cyber liability, employment practices, environmental, and surety are largely stable.