Insurance
Home›Insurance›Property Insurance›Commercial property premiums drop in Q1 2026 for first…
Commercial property premiums drop in Q1 2026 for first time since 2017
Alliant says property buyers are seeing high single-digit to more than 20% rate cuts, while casualty costs continue to rise driven by social inflation and nuclear verdict exposure.
Commercial property insurance premiums fell 1.2% across account sizes in the first quarter of 2026, marking the first decline since the third quarter of 2017, according to Insurance Business citing data from Alliant Insurance Services' 2026 Mid-Year Insurance Marketplace Insights and Observations Report.
The report highlights a widening split between property and casualty pricing. Property renewals are seeing reductions in the high single digits to more than 20%, with some real estate insureds recording double-digit decreases for a second or third consecutive renewal.
Casualty lines, by contrast, remain under pressure. Auto liability rates are running between 7% and 25%, umbrella liability between 10% and 20%, and excess liability between 8% and 18%, with social inflation, nuclear verdicts, and third-party litigation funding identified as key drivers.
Alliant also points to legal and cyber developments. It cites that social inflation increased US liability claims by 57% over the past decade, references the US Supreme Court's unanimous ruling in Montgomery v. Caribe Transport II as adding exposure for the transportation sector, and says ransomware attacks were four times higher in 2025 than in 2020 and 50% higher than in 2024. The report also notes the insurance-linked securities market hit record issuance of $25.6 billion in 2025 and that spreads were 5.61% as of May 1, 2026.