| Trend | Range | |
|---|---|---|
| Favorable risk rate predictions for 2025 | ||
| Professional Liability |  |
0% to +5% |
| Property | |
Flat to +5% |
| General Liability | |
Flat to +5% |
| Auto | |
Flat to +5% |
| Workers compensation | |
Flat to +5% |
| Umbrella |  |
+10% to +15% |
| Management liability | |
Flat to +5% |
| Cyber | |
0% to +5% |
| Trend | Range | |
|---|---|---|
| Challenging risk rate predictions for 2026 | ||
| Professional Liability | |
+5% to +15% |
| Property | |
+10% to +20% |
| General Liability | |
+10% to +15% |
| Auto | |
+20% to +30% |
| Workers compensation | |
+5% to +10% |
| Umbrella | |
+10% to +15% |
| Management liability | |
Flat to +5% |
| Cyber | |
+10% to +15% |
Key takeaway
The A&E professional liability (PL) marketplace continues to operate in a two-tier structure: favorable’ risks, characterized by low exposure and strong loss histories, and ‘challenging’ risks, defined by higher exposure services or project types and adverse loss experience. The market for the favorable tier is stable with competitive pressure; with conditions varying by account size, loss history and risk profile. The challenging tier is seeing considerable premium increases and underwriter requirements for higher deductibles. Adverse severity claim trends reported by professional liability (PL) carriers continue without any signs of improvement — with 85% of PL carriers noting an increase in claims severity trends[1]. Social inflation is being cited as a primary driver across all casualty lines. A&E PL carriers are also increasingly concerned with economic uncertainty and emerging risks like AI and climate change.
PL claims are taking longer and costing more to resolve. Depending on area of practice, project types and loss history; firms can expect PL rate increases in the 0% to 15% range. Firms may also feel pressure to take on higher deductibles and self-insured retentions. In addition, some PL carriers have reduced their available capacity to as low as $5 million limits, resulting in the need for some design firms to look to excess markets to meet their higher limit requirements — which come at additional cost. In regard to A&E property & casualty programs, firms with large auto-fleets, adverse loss history or difficult property exposures will be considered challenging risks.
The A&E professional liability marketplace remains stable with competitive pressure as we look toward 2026. Capacity restrictions remain in place, but rates are mostly stable. Adverse claim trends persist alongside a continued reduction in A&E PL Carriers' willingness to underwrite certain risks.
- While some A&E PL Insurers are indicating premium increases across their entire book of business to offset claim severity trends, certain insurers are taking a strategic underwriting approach that will target high-risk projects or specific market segments. Third party bodily injury claims on large infrastructure projects remain a difficult risk to manage, and some carriers have reduced their appetite for risks that take on these exposures.
Claim severity trends continue and were the primary driver for rate increases for specific exposures in 2025. Insurers note social inflation, the length of time to settle, tariffs, economic uncertainty, the rise in bodily injury claims as primary factors — with emerging risks such as artificial intelligence and climate change as contributors.
Overall, the A&E insurance marketplace in 2025 has been stable with competitive pricing for favorable risks, particularly in professional liability, cyber and executive risk, while casualty lines such as auto and umbrella continue to experience upward pressure from claims severity and social inflation. Looking ahead to 2026, we anticipate a continued split of results: firms with favorable risk profiles and strong controls should maintain access to stable pricing and capacity, while challenging exposures may see tightening terms and elevated rates as carriers remain focused on adverse loss trends.
Design firms should prepare for a complex insurance landscape and work closely with their brokers to navigate the market effectively.
Footnote
- 2024 WTW A&E Carrier Survey. Return to article
