North American Commercial Property Insurance Rates Plummet
Commercial property insurance rates in North America have seen their steepest drop in a decade, according to a report by Willis, a WTW business. The decline marks a reversal of the multi-year hard market that peaked between 2018 and 2024. WTW’s proprietary benchmarking shows the large and complex property market ended 2025 at risk-adjusted rates roughly equivalent to 2022 levels, with Q1–Q2 2026 results suggesting rates are trending toward 2019 levels.
Double-Digit Reductions Across the Board
The Willis Insurance Marketplace Realities report highlights widespread double-digit price cuts for clients. Rates for large and complex property insurance programs fell by an average of 14.5% in the second quarter of 2026, up from 8.4% the previous year. Shared and layered placements saw an even sharper decline, with rates down 23.41%, compared to 14.57% in the same period in 2025. This softening is driven by abundant capacity and strong capital levels in reinsurance, with treaty reinsurance softening at every renewal date in 2026, further easing primary market rates.
Competitive Pressures and Buyer-Friendly Conditions
Insurers are responding to the competitive environment by enhancing terms, conditions, deductibles, and wordings. This shift benefits buyers, as both reinsurers and insurers maintain strong financial health. The report predicts future rate reductions of 5% to 15% for single-carrier property programs and 15% to 25% for shared and layered placements. “Absent an extremely large CAT event ($150 billion+), this trend is expected to continue through year-end, though underwriter discipline around technical rate adequacy should not be discounted,” Willis noted. Replacement costs are inflating at accelerated rates again, driven by US tariff policy and the Middle East situation, making accurate and updated valuations critical.
Regional Trends and Market Outlook
The softening trend extends beyond the United States, with Canada’s property insurance market also experiencing significant capacity and rate reductions of 5% to 20%. In Bermuda, non-catastrophe property rates are expected to fall by 15% to 30%, while catastrophe-exposed programs could see declines of 10% to 20%. Despite these reductions, Bermuda’s focus has shifted toward competition on expanded coverage, lower attachment points, and reduced retentions, indicating high appetite for property risks even as rates approach soft market lows.
