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Specialty insurers face underwriting disconnect as risks evolve
Industry panelists warned that if soft pricing and long-tail losses keep worsening, carriers may need either higher rates or reduced capacity.
A panel at InsuranceFest 2026 warned that the specialty insurance market may be approaching a tipping point where abundant capacity, soft pricing, and deteriorating long-tail loss trends can no longer coexist, according to Insurance Business.
Yosha DeLong, global engagement officer at Mosaic Insurance, said the current environment is raising questions about how sustainably carriers can deploy capital, adding that the next phase could bring either pricing increases or a pullback in capacity across lines.
Panelists also focused on the growing need for specialty insurers to move beyond product silos and build programs around how claims develop, arguing that emerging risks like autonomous technology can trigger multiple coverages at once, such as D&O, E&O, cyber, and casualty.
Emily Selck of The Baldwin Group said pricing in cyber insurance still appeared disconnected from risk, noting some rate increases in smaller accounts but describing the broader market as hardening unevenly; Reid Eanes of Lockton argued insurers have been pricing based on available capital rather than underlying losses.