WTW reports accelerating softening in specialty insurance markets

Specialty insurance and reinsurance rates declined sharply in the first half of 2026 and during the July 1 renewals, according to WTW’s Specialty Insurance Marketplace Survey (SIMS). The data indicates an acceleration in weaker rating conditions compared to 2025, with insurance rates falling 4% gross of trend and 6% net of trend in the first six months of the year.

Reinsurance softening has accelerated three to four times faster than insurance softening. By July 2026, approximately 65% of the rate-strengthening gains achieved between the 2017 market start and the 2023 peak had been eroded. The survey, which covers specialty insurers in the London, Bermuda, and U.S. excess and surplus markets, draws on approximately $300 billion in gross written premium over a 10-year cycle.

Market performance varied by sector. Property experienced the steepest declines, with rates falling 17% net of trend at the July 1 renewals. Energy and Financial and Professional Liability (FinPro) saw high-single-digit reductions, though early signs of stabilization were noted in U.S. FinPro. Marine rates declined by mid-single digits, while Aviation and Accident & Health saw low-single-digit reductions. In the Casualty sector, 6% rate increases at the July 1 renewals were insufficient to offset an estimated 8% claims trend.