Insurance Marketplace Realities 2026 Spring Update – Bermuda

	Trend	Range
Property (Non Natural Catastrophe exposed (Non-Nat CAT))		–30% to –15%
Property (Natural Catastrophe exposed/loss free)		–20% to –10%
Casualty		Flat to +20%
Employment practices liability (EPL)		Flat to +15%
Wage and hour		+5% to +20%
D&O / Management liability		–10% to +5%
Cyber		–10% to +10%
Professional liability (E&O)		Flat to +25%
Professions (ML/EPL)		Flat to +25%

Key takeaway

1. Strategic market expansion: The "Class of 2026" has expanded the market to 17 carriers, reinforcing Bermuda’s position as a deep, competitive capacity pool for global risk programs.
2. Unmatched property capacity: With over $2.5 billion in capacity, Bermuda remains a primary driver for completing global towers, even as non-CAT property rates soften by 15% to 30%.
3. Casualty market leadership: Bermuda continues to be the leading source of casualty capacity growth globally, outperforming U.S. and London markets in appetite and volume.
4. Structural stability in financial lines: Bermuda’s role in financial lines remains structural and consistent, providing essential excess capacity and layering flexibility rather than opportunistic participation.
5. Addressing social inflation: Despite rising casualty rates driven by social inflation, the introduction of the Gemini facility and new market entrants are beginning to moderate the pace of increases.
6. Stabilizing D&O and Cyber sectors: High-demand sectors like D&O and Cyber are reaching equilibrium, with rate reductions flattening as the market prioritizes long-term underwriting discipline.
7. Innovation in emerging risks: The market is actively developing specialized solutions for disruptive industries, including AI, fintech, and digital assets, reflecting Bermuda’s culture of innovation.

Bermuda property

Q1 2026 saw continued rate softening, with well-performing non CAT businesses achieving reductions of 15% to 30% and CAT-exposed loss-free accounts delivering decreases of 10% to 20%, depending on peril and attachment. Loss-impacted CAT risks saw more moderate improvements, though double-digit reductions remained achievable in select cases.

Bermuda casualty

Casualty rates continue to increase, with Q1 2026 marking the seventh consecutive year of rate firming. While low-hazard risks are seeing low single-digit increases, high hazard and loss-affected accounts continue to experience more pronounced upward pressure. Additional capacity from new entrants and the introduction of the Gemini facility has begun to moderate the pace of increases, though overall market direction remains upward.

Bermuda financial lines

The Bermuda financial lines market remains competitive overall, but with increasing divergence across products. Core lines such as D&O, Cyber and EPL are stabilizing following a prolonged soft market cycle, with rate reductions slowing and, in many cases, flattening. In contrast, wage and hour and Professional Liability continue to experience upward pressure driven by elevated claims activity, regulatory developments and loss severity.