Stability and opportunity
As we predicted last year at this time, 2025 was a year of relative stability in the financial and executive lines marketplace. Although there was quite a bit of noise and shifting claims trends, overall premiums were generally steady. We see 2026 as much the same. This will be a year where the overall premium trend will be flat to slight increases, but also a good opportunity to consider additional coverages or limits.
Our claims data for 2025 showed a material uptick in the quantity of employment practices claims, but otherwise flat growth in other FINEX lines. We also saw elevated settlement figures, which coincided with a record amount of insurance proceeds collections for our clients from our claims group. In D&O, this materialized through higher median settlement numbers and increased defense costs. In cyber, we have seen business interruption coverage as a main driver of increased claims payments on a per claim basis.
In the articles we present below, we will dive into the details of what is driving the markets of the various FINEX lines. Two common threads will be clear. First, the effect of the transition to the current presidential administration is still a work in progress. We are seeing a change in federal priorities, but they are taking time to affect the overall claims environment and market. We think we will see a lot more clarity in this regard by the end of the year.
Second, artificial intelligence (AI) will be a claims driver across almost all lines in 2026. Whether it’s related to misrepresentations in a public filing, algorithmic bias in the workplace, or novel cyber or crime schemes, we will see an increasing percentage of claims in 2026 borne from AI related issues.
Despite the evolving claims environment and industry consolidation, capacity in the marketplace is still plentiful, which will be the main driver of relatively flat rates. We will be closely monitoring the market throughout the year and relay any changes we see to you as soon as possible.
In the meantime, as we advised in 2025, the relative budget certainty of 2026 will make it a great year to consider purchasing additional coverages and/or limits. In this regard, please do not hesitate to reach out to our subject matter experts who wrote the below articles to discuss your options.
Please enjoy our articles discussing FINEX trends in more detail. If you have any questions or want to talk about any of the issues raised in these articles, please feel free to reach out to me directly anytime.
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Our perspective on what to expect in 2026 for the directors and officers (D&O) liability market.
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Our perspective on what to expect in 2026 for the cyber insurance market.
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Our perspective on what to expect in 2026 for the employment practices liability market.
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Our perspective on what to expect in 2026 for the fiduciary liability market.
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Our perspective on what to expect in 2026 for the fidelity and crime market.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
