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Commercial P&C premiums fall further in Q2 2026 as rate relief spreads
Premium decreases averaged 2.0% in Q2 2026, up from 1.2% in Q1, with large accounts seeing a 3.7% drop.
Commercial property and casualty insurance rates softened further in the second half of 2026, with premium decreases across account sizes accelerating to an average of 2.0% in Q2 2026 from 1.2% in the first quarter, according to Reinsurance News, citing The Council of Insurance Agents and Brokers Commercial Property/Casualty Market Report for Q2 2026.
Rate relief was most pronounced for large accounts, where average premiums fell 3.7% after a 2.7% decline in Q1. Medium accounts saw decreases hold steady at 1.9%, while small accounts decreased slightly by an average of 0.5%.
Across lines of business, overall rates contracted by an average of 0.3% in Q2 2026. Ten lines posted premium reductions, including business interruption, commercial property, construction risks, cyber, D&O, employment practices, flood, marine, terrorism, and workers compensation.
Commercial property recorded the largest premium decline at 6.3%, extending a full year of decreases, while cyber and workers compensation each fell 3.2%. The report also found that major lines still averaged increases, though the overall rise for commercial auto, commercial property, general liability, umbrella, and workers compensation dropped to 0.4% from 0.8% in the prior quarter.