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Commercial property pricing slides 8.1%, changing renewal leverage
The Baldwin Group says casualty rates are still rising, but property softening is giving brokers more room to negotiate limits and deductibles.
Commercial property pricing fell 8.1% in the second quarter of 2026, extending a fifth straight quarterly decline, while casualty rates continued to rise, according to The Baldwin Group.
The firm said the widening gap is changing renewal negotiations, with brokers able to offer more flexibility on property pricing, limits, and deductibles. Baldwin also noted that loss-free, well-documented accounts may recover coverage terms surrendered during the hard market.
Casualty pricing in Baldwin’s portfolio continued to increase but with moderation in the pace. Commercial auto and general liability each rose 4.5%, and umbrella pricing increased 5%, following first-quarter increases of 5.7%, 6.1%, and 8.2%, respectively.
Baldwin said liability conditions remain pressured by factors including large liability judgments, third-party litigation funding, vehicle repair costs, and rising total-loss frequency. It added that sectors exposed to construction, real estate, healthcare, hospitality, and litigation generally face more scrutiny, shaping how brokers discuss whether clients should bank property savings or redeploy them into casualty elements like higher umbrella limits or retained risk capacity. Leslie Nylund of The Baldwin Group said property and casualty are producing two different renewal conversations, even as property improves.