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E&S property market shifts negotiating power toward insureds in 2026

Excess and surplus property premiums were about $100 billion in 2024, and the market is facing surplus capacity outpacing demand in parts of the U.S. as competition drives rate relief.

Reported · Written up by our desk · Property Insurance

Abundant capital and intensifying competition among insurers, reinsurers and managing general agents are shifting more negotiating leverage to buyers in the U.S. excess and surplus property (E&S) market, according to Risk Placement Services’ 2026 U.S. Property Market Outlook Report.

Risk & Insurance reports that while catastrophe losses are rising, underwriting outcomes are becoming more dependent on a specific risk’s geography and quality rather than broad asset class. The outlook also points to a supply-demand imbalance, with surplus capacity outpacing demand in several segments, helped by relatively benign loss activity in the fourth quarter of 2025.

The E&S market generated roughly $100 billion in premiums in 2024, about 9% of the broader U.S. property and casualty market, and it posted an estimated combined ratio of around 88% in 2024, outperforming the wider P&C sector. Competitive rate reductions have, in some cases, extended beyond levels typically tied to target profitability, raising questions about how carriers will sustain both margins and market share.

Property rate relief is described as most pronounced for larger accounts and well-performing risks within layered programs, though complex risks and smaller accounts are also seeing competitive improvements. Risk Placement Services also said standard property markets may still accept deals, but can respond by tightening terms such as higher deductibles, sublimits or restrictions on perils including wildfire, convective wind or flood.

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