| Trend | Range | |
|---|---|---|
| Public company: Primary ABC |  |
-3% to +3% |
| Public company: Excess ABC |  |
Flat to +3% |
| Public company: Side A DIC |  |
Flat |
| Private company: Primary/excess ABC, Side A DIC | |
-5% to +5% |
Key takeaway
Rate conditions continue to stabilize, with insureds largely experiencing flat results, or limited single‑digit upward or downward changes, through 2026. Looking ahead, we anticipate markets to signal greater pressures toward rate correction, particularly on excess layers where pricing may be falling below an insurer’s perceived minimum rate per million of coverage.
Underwriting
Public company
- Rate environment: Reductions may still be available on a case-by-case basis, but the likely renewal outcome is flat or low single-digit increases for most stable risk profiles.
- Effect of market consolidation: Rates remain stable as a result of continued, abundant capacity. Nevertheless, we are monitoring fluctuation, if any, due to market consolidations over the next 12 to 18 months.
- Focus on coverage/driving value in a stable environment: Where pricing flexibility is limited, companies should engage insurers to differentiate through added value, including enhanced coverage terms such as entity investigation cost coverage and higher sublimits, where feasible.
Private company
- Primary: Insureds with stable risk profiles continue to see enhanced competition, with a floor of flat renewals and decreases when marketed.
- Excess: We are starting to see a flattening in increased limits factors (ILFs).
- Retentions: For challenged risks, carriers are pressing for higher retentions. Severity of increases often depend on prior increases and the need, if any, for continued correction.
- Increased deployment: Carriers are willing to regularly deploy capacity for preferred risks. Additional capacity can also be found for more challenging risks. This is having an impact on market conditions more broadly, as the abundance of capacity continues to drive rate competition.
Challenged risk profiles
- Non-U.S. parent with U.S. exposures
- Liquidity challenged and pre-restructuring/bankruptcy risks
- Challenged industries, e.g., AI-exposed organizations; oil and gas, healthcare, life sciences, higher education, cryptocurrency, cannabis
- IPOs, de-SPAC business combinations
Despite challenges and anticipated potential for increases, capacity remains available.
Risk profile focus
- Adaptability to macroeconomic and political conditions, including tariffs and trade practices, regulatory uncertainty, economic policy shifts, and pressures surrounding ESG (including climate and DEI practices)
- AI integration and adaptedness
- Cyber/privacy: adequacy of disclosures, oversight
- Financial strength
- Industry
- Claim history
- Loss-cost escalation
- Systemic exposures
- Exposures to government funding
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Disclaimer
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).
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