News Release: Soft Market Conditions Reigned in Q1 2026, According to The Council’s P&C Market Survey

Soft Market Conditions Reigned in Q1 2026, According to The Council's P&C Market Survey

WASHINGTON, D.C. - The results of The Council's quarterly P&C Market Survey are now available, and for the first time since Q3 2017, survey respondents reported an average decrease in premiums across all account sizes, at -1.2%-a decisive sign of a softened market. Large account premiums fell an average of -2.7%, while medium account premiums slipped by -1.9%. Small account premiums rose by just 1.1%, a 60% decrease from the previous quarter's 2.8% rise.

As they did last quarter, respondents said that, on average, premiums for nine lines of business decreased: business interruption, commercial property, construction risks, cyber, D&O, employment practices, marine, terrorism, and workers compensation. Of those lines, commercial property premiums declined the most, averaging -5.8%, a noticeable acceleration from the two previous quarters, where property premium decreases were smaller than -1%.

Respondents and industry observers attributed the relief in this line to increased carrier appetite, ultimately stemming from improved underwriting and risk management practices in previous years. Respondents reported lower pricing and more favorable underwriting terms and conditions as carriers competed for business. Respondents also noted this as the case for property business. Even cat-prone property saw some relief, and risks that originally had to find cover in the E&S market were returning to the traditional market.

On the other hand, respondents reported that commercial auto premiums rose by an average of 5.8%-the highest increase out of all lines and the 59th consecutive quarter of steady increases for this commercial line. Some respondents did note easing in auto pricing and underwriting, in line with the overall softened market, but said that nevertheless the line remained "problematic."

The driving factors behind commercial auto's issues-increased claim frequency and severity-are a familiar problem to the industry. According to AM Best, congested roads, distracted drivers, and litigation all kept claim frequency high, while social inflation meant that litigation resulted in nuclear verdicts that amplified claim severity. Additionally, economic inflation is driving up vehicle repair and replacement costs and medical costs. These factors, paired with an increase in the amount of technology used in vehicles, also contributed to claim severity.

Download the full Q1 2026 P&C Market Report.