Alera Group 2026 Property and Casualty Market Outlook: What’s soft, whats’s hard and what’s complicated?

Deerfield, IL (December 10, 2025) — Alera Group’s sixth annual Property and Casualty Market Outlook reveals selective moderation in rates across many insurance lines, paired with broader coverage availability and significant capacity expansion heading into 2026. The report shows a more competitive environment among carriers as profitability improves, capital flows back into the market and underwriting tools become increasingly sophisticated.

While conditions are easing overall — particularly in Commercial Property, Directors and Officers Liability, Personal Lines and Workers’ Compensation — certain areas such as Commercial Auto, General Liability and Umbrella/Excess Liability may continue to face upward pricing and tighter underwriting. Ongoing social inflation, regulatory pressures and rising natural disaster losses also underscore the evolving complexities businesses must navigate.

Additional highlights from the 2026 P&C Market Outlook:

• Rate relief in several lines: Average rate decreases are expected for Commercial Property (including Business Interruption), private and public Directors and Officers Liability, Personal Lines and Workers’ Compensation. Lines with increases are generally moderating, with most staying in the single digits except Commercial Auto.
• Coverage availability strengthens: Nearly every major line shows improved availability compared to 2025, with especially notable gains in Personal Lines. The only lines without a significant increase in broader availability expectations are Cyber and Professional Liability.
• Market capacity expands: Capacity is increasing across multiple lines, most dramatically in Commercial Property and Personal Lines, signaling renewed competition among carriers and more options for buyers.
• Underwriting shifts: Carriers remain selective, but underwriting is becoming more flexible in Property, Directors and Officers Liability (D&O), Personal Lines, Surety and Workers’ Compensation — while tightening continues in casualty-driven lines such as Commercial Auto, General Liability and Medical Malpractice.

“The 2026 Outlook reflects a market that is finally opening up after several challenging years,” said Justin Foa, Alera Group’s National P&C Practice Leader.“ Clients are seeing more favorable terms, broader availability and increased capacity — but they still face real pressures from social inflation, catastrophic weather losses and regulatory changes. At Alera Group, we’re focused on helping organizations strengthen their risk profiles and capitalize on the opportunities this shifting market presents.”

The full 2026 P&C Market Outlook report, based on Alera Group’s survey of insurers, wholesalers and industry vertical experts is available for download on the Alera Group website. For inquiries, contact a local Alera Group office or email info@aleragroup.com.

CLICK HERE to access the full 2026 P&C Market Outlook.