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Softening commercial property is intensifying workers’ comp competition
Workers’ comp premiums fell 3.2% in Q2, while commercial property declined 6.3%, according to an industry survey.
Workers’ compensation brokers are continuing to see aggressive pricing heading into the end of 2026, as the economics of the line face more pressure, Insurance Business reported. A key factor prolonging the competition is spillover from a rapidly softening commercial property market. The Council of Insurance Agents & Brokers’ P and C Market Survey found workers’ comp premiums declined by an average 3.2% in the second quarter, marking the 18th consecutive quarter of decreases, while commercial property fell 6.3%.
Bill Chepulis, head of large casualty for US National Accounts at Zurich, said falling property revenue can push carriers to look for growth elsewhere, with workers’ comp an obvious target. He added that this revenue pressure can lead to “bad behavior” in the market, including low-cutting to keep business on the books, Insurance Business reported.
The article also notes that workers’ comp continues to offer insurers ample reason to compete, citing NCCI data showing private carriers posted a 91% calendar-year combined ratio for 2025, extending the industry’s underwriting pressure into the next cycle.