Insurance Marketplace Realities 2027 – Bermuda

Bermuda entered the second half of 2026 with capacity deployed across a broader range of lines than  than seen in recent market cycles, and with underwriting discipline that appears to have remained broadly intact. Those two conditions are producing different outcomes by class rather than a single market direction. Where capacity exceeds demand, as in property, competition has moved past rate and onto structure. Where loss cost is still moving, as in casualty, additional capacity is moderating the pace of increase without reversing it.

Property

Q2 2026 saw continued softening as competition to write premium increased. Well-performing non-CAT business achieved reductions of +15% to +30%, and CAT-exposed loss-free accounts secured decreases of +10% to +20%, depending on perils covered and attachment level. Loss-impacted CAT-exposed risks saw more moderate reductions, though decreases remained achievable in select cases. We expect the pace of reduction to slow through the balance of the year, with competition pivoting toward policy enhancements such as expanded coverage and lower retentions. Over $2.8 billion of Bermuda capacity supports this, and carriers are increasingly flexible in how they deploy it, often willing to support stretched limits, lower attachment points and increased CAT coverage. The Class of 2026 entrants have established themselves across quota share, primary and excess layers. Bermuda is widely recognized for its ability to provide capacity across multiple layers of a program, particularly for large excess limits.

Casualty

The excess casualty market grew in both rate and revenue through the first half of 2026, though the pace of rate increase is levelling out. High hazard and loss-affected business continue to see increases of +5% to +20%, driven by loss experience, severity trends, exposure change and sustained focus on pricing adequacy. Low hazard business without losses is generally seeing increases of 0% to +5%, with some accounts approaching flat renewals where the risk profile remains favorable. Capacity is readily available. Incumbent carriers are looking to hold or increase their positions while pursuing new accounts, and new capacity is contributing to competition on the better-performing segment of the market. The market is now visibly two-tiered, with risk quality, loss experience and exposure characteristics determining renewal outcomes to a degree more significant than in recent years.

Financial Institutions (FI)

The financial lines market remains stable and competitive, with growing divergence by product. Directors and Officers (D&O), Cyber and FI Blends are stabilizing after a prolonged soft cycle, with renewals flat to modestly down. Employment Practices Liability (EPL), wage and hour and professional liability face greater pressure from claims frequency and severity, with California exposures and class action activity particularly challenged. Capacity has remained consistent through recent consolidation, at approximately $250 million for D&O and $135 million for Cyber, and two new markets are expected in Q3 and Q4 with a focus on professional services and law firms where replacement capacity is needed. FI Blends renewals are running close to flat and Bermuda remains a core market for the class, with a long history of stable capacity through the cycle. CyProtect Bermuda 2.0 is expected in H1 2027, refreshing the excess follow-form wording and Bermuda-specific coverage enhancements.