Seven Years of Increases Just Ended
For the first time in more than seven years, commercial insurance premiums have dipped. Global commercial insurance rates fell 5 percent in the first quarter of 2026, marking the seventh consecutive quarter of decreases after a 33-quarter streak of increases. That is a meaningful shift for every business owner who has watched their renewal come in higher year after year with little room to push back. The pressure is not gone entirely, but it is lifting, and for the first time in a long while, the market environment favors the buyer more than the carrier.
The improvement is not uniform across every line of coverage. Property conditions have stabilized meaningfully, with businesses that have strong risk profiles and clean loss histories seeing some of the most favorable treatment in years. Workers’ compensation is holding flat, in a range of roughly minus 3 to plus 3 percent. Even cyber insurance, which tightened dramatically over the past few years, has softened. The clear exceptions are commercial auto and umbrella liability, both of which continue to see increases in the range of 8 to 15 percent, driven by rising jury verdicts and higher claim severity. But for most lines of coverage, the direction has changed.
Why This Window Matters
A softening market does not mean every business automatically pays less. It means the conditions exist for a business with a clean loss history, solid risk management practices, and a good presentation to negotiate better terms, broader coverage, or both. The businesses that benefit most from this environment are the ones that prepare for their renewal rather than letting the policy auto-renew and hoping for the best.
Underwriters in a soft market are competing for good accounts. That competition is real, and it creates leverage that simply was not available during the hard market years. A broker who can present your business clearly, document your risk controls, and approach multiple carriers on your behalf is worth significantly more in this environment than one who simply renews what you already have. This is the year to push, and the businesses that do it thoughtfully will see the results.
What a Good Renewal Strategy Looks Like
Start with your data. Make sure your payroll figures, property values, revenue numbers, and vehicle schedules are accurate and up to date. Underwriters price risk based on the information they receive, and outdated or estimated numbers lead to higher premiums or coverage gaps. If your property values have not been updated, fix that before renewal, not after.
Next, document your risk management practices. If you have a safety program, a return-to-work protocol, driver training records, maintenance logs, or cybersecurity controls in place, those should be part of your renewal submission. Carriers in a competitive market reward businesses that can show they manage risk actively, not just insure against it. A narrative that tells the story of your business, including what you have done to reduce risk, gives an underwriter a reason to offer better terms.
Finally, give your broker enough time to shop. Starting the renewal process 90 to 120 days before your expiration date allows your agent to approach multiple markets, compare options, and negotiate from a position of strength. A last-minute renewal, even in a favorable market, limits your options and your leverage.
Do Not Let a Good Market Go to Waste
Markets cycle. The conditions that exist today will not last indefinitely, and history suggests that the window of favorable pricing and broader terms can close quickly when loss activity shifts or carrier appetite changes. The worst move a business owner can make in a soft market is nothing. Letting a policy auto-renew without exploring what is available is the equivalent of leaving money on the table during the one year the table is set in your favor.
donegan can help you build a renewal strategy that takes advantage of where the market is right now. Whether that means shopping your program across multiple carriers, restructuring your coverage to eliminate gaps, or simply confirming that your current terms are competitive, this is the year to have that conversation. The market is working in your favor. Let us help you make the most of it.
Frequently Asked Questions
What does it mean when the insurance market is softening?
A softening market means carriers are competing more actively for business, which generally results in lower premiums, broader coverage terms, and more flexibility in underwriting. It is the opposite of a hard market, where carriers tighten terms and raise prices due to higher losses or reduced capacity.
Will every line of coverage see lower rates?
No. While the overall trend is favorable, commercial auto and umbrella liability are still experiencing increases due to rising jury verdicts and claim severity. Property, workers’ compensation, and cyber are the lines seeing the most improvement in 2026.
How far in advance should I start my renewal process?
Ideally 90 to 120 days before your policy expiration. Starting early gives your broker time to approach multiple carriers, compare options, and negotiate the best terms available in the current market.
