Q2 2026 reinforced the soft market conditions seen earlier in the year, with commercial property and casualty (P&C) insurance premiums continuing to decline across most account sizes and lines of business. According to The Council of Insurance Agents & Brokers’ (CIAB) Commercial P&C Market Index for Q2 2026 (April 1 – June 30), average premiums decreased by 2.0%, accelerating from the 1.2% decline recorded in Q1. Large accounts experienced the steepest drop at 3.7%, followed by medium accounts at 1.9% and small accounts at 0.5%.
This ongoing softening reflects increased carrier appetite and competition, especially in commercial property, which posted the largest premium decrease at 6.3% for the second consecutive quarter. While most lines saw decreases, umbrella continued to rise, driven by persistent challenges such as nuclear verdicts and claims severity. Below, we review the key premium changes by line of business and highlight notable trends in commercial property.
Premium Changes by Line of Business
Other notable rate changes in Q2:
- Umbrella (+5.3%)
- Workers Compensation (-3.2%)
- Cyber (-3.2%)
- Commercial Auto (+4.5%)
Umbrella Premiums Rise Driven by Nuclear Verdicts
Umbrella premiums increased by 5.3% in Q2 2026, marking the 35th consecutive quarter of growth (nearly nine years). This rise is largely driven by the severity and frequency of nuclear verdicts, which have increased significantly in recent years. More specifically, commercial auto as one of the main sources of nuclear verdicts plaguing the line. Between increasing vehicle repair costs and high healthcare costs for drivers after an accident, litigation — and thus claim severity — quickly drives up costs.
Besides litigation, exposures related to “forever chemicals” (per- and polyfluoroalkyl substances or PFAS) and emerging risks like AI were of concern to carriers.
Commercial Property Premiums Decline as Carrier Capacity Grows
Commercial property insurance had its fourth consecutive quarter of premium decreases in Q2 2026. Premiums fell by an average 6.3%, which was the largest decrease in property premiums since Q2 2010 (-7.0%).
One of the reasons for the decline was carriers softening pricing to offset increases in other lines such as umbrella. On top of that, 75% of survey respondents said they observed an increase in property capacity, leading to intensified competition among carriers and resulting in lower pricing and premiums for many insureds.
For a consultative approach to navigating coverage and pricing changes within the insurance market, contact a UNICO Advisor.
For more information, download the full report below.
The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q2 2026. Readers should contact legal counsel or an insurance professional for appropriate advice.
