Commercial Property Rate Cuts Deepen As Soft Market Spreads Across Nearly All Account Sizes

Commercial property/casualty premiums declined by an average of 2.0% across all account sizes in the second quarter of 2026, up from a 1.2% average decrease in the first quarter, according to The Council of Insurance Agents & Brokers’ latest Commercial Property/Casualty Market Report.

The Council reported that large accounts (generating more than $100,000 in commission and fee revenue) saw the steepest drop, with premiums falling an average of 3.7%, followed by medium accounts (between $25,000 and $1000,000) at 1.9% and small accounts (less than $25,000) at 0.5%, according to the survey of member brokerages.

According to the report, this marked the first time in 34 quarters that every account size category posted a decrease simultaneously. Ten lines of business recorded average premium decreases in the quarter, one more than in the first quarter of 2026, and the average change across all lines of business, including the major lines, was a 0.3% decrease.

Property Softens Further As Capacity Swells

Commercial property recorded the largest decrease of any line for the second consecutive quarter, with premiums falling an average of 6.3%, according to The Council. That compares with a 5.5% decrease in the first quarter of 2026 and marks the largest drop in property premiums since a 7.0% decrease in the second quarter of 2010, the report said.

The Council said the line has now posted decreases for a full year. Seventy-five percent of respondents reported an increase in property capacity, which the report said typically pushes carriers to compete more aggressively for business and drives down pricing.

One respondent from a large Southeastern brokerage firm said carriers were “softening [workers’ compensation] and property pricing to absorb umbrella increases.” Another respondent from a large Southeastern firm said large property accounts often saw renewals down by more than 10% in the quarter, while a respondent from a large Midwestern firm reported “a big shift in lower rates and increased sublimits for middle market property.”

The Council said softened conditions also produced lower deductibles, particularly for wind and hail coverage.

Umbrella And Auto Remain Outliers As Nuclear Verdicts Persist

While most lines softened, umbrella and commercial auto continued to see above-average increases. Umbrella premiums rose an average of 5.3% in the quarter, marking the 35th consecutive quarter of increases for the line, nearly nine years, according to The Council. That figure climbed from a 29-quarter low of 4.7% in the fourth quarter of 2025. Commercial auto posted the second-highest increase at 4.5%, down from 5.8% in the first quarter of 2026.

The Council said 40% of respondents reported a contraction in umbrella underwriting capacity, which the report described as a sign of more disciplined, and potentially harder, underwriting conditions.

Cyber And Workers Compensation Extend Long Decline Streaks

Cyber and workers’ compensation both posted average decreases of 3.2% in the quarter, according to The Council. That extended cyber’s decline to nine consecutive quarters and workers’ compensation’s to 18 consecutive quarters. Among the 10 lines with average decreases, the report also cited business interruption, construction risks, D&O, employment practices, flood, marine, and terrorism. Of the remaining lines, broker E&O and surety bonds posted increases of less than 1%, while general liability and medical malpractice each rose an average of 1.8%, according to the report.

Obtain the full report here. &