Specialty insurance rates soften faster than expected: WTW survey
Specialty insurance rates soften at faster than expected pace, retreating to 2020 pricing levels, WTW survey finds
New York, NY (May 6, 2026) – Specialty insurance market rates declined in 2025 and for 1 January 2026 renewals, with the pace of change exceeding expectations in the published forecasts by both brokers and insurers, according to WTW’s Specialty Insurance Marketplace Survey (SIMS).
The WTW survey reflects around $250 billion of gross written premium over a 10-year cycle, including $45 billion in 2025, and covers specialty insurers operating across the London, Bermuda and the U.S. excess and surplus (E&S) markets. Rather than using broker-derived data, the survey is built exclusively on data contributed by clients of WTW’s Insurance Consulting and Technology business that participate directly in SIMS.
Based on the SIMS insurance rate index, expected performance (which is net of exposure trends) in 2025 has unwound the rate strengthening gains of the last few years back to levels last seen in 2021. 2025 was the first year since 2018 for which rate adequacy for new business was lower than for renewal business.
Data from 1 January 2026 renewals and new business point to continued rate softening, with a 10-point decline in the insurance rate index, back to 2020 levels.
Richard Clarkson, Global Market Leader, Global Specialty, WTW, said: “Our intention is to provide insights on Specialty market dynamics that haven’t been possible before – using market derived data to deliver a consistent view of risk adjusted rate change over a large number of classes and key geographies, aligned to how underwriting teams are organised. Our clients already use this to validate business plans, compare current year rating trends, assess impact of new and renewal rate adequacy and support reserving processes.”
For 1 January 2026 renewals, 75% of the 42 material classes show rate decreases (on a gross-of-claims-trend basis), compared with 30% of classes in 2024. The inclusion of claims trend data within SIMS allows for a more complete picture of expected profitability movements. In particular, the survey shows that aggregated insurance rates decreased by 5% gross of claims trend and 8% net of claims trend (i.e. adjusted for actuarial-estimated inflation in claims costs over and above what is captured in rate change data).
The findings also highlight the speed of recent market movements. An approximate 45% cumulative rate increase was achieved between 2017 and the market peak in 2023, with around half of that increase eroded over the past two years.
The most pronounced rate decreases are in Property and Energy, followed by Marine, Financial Institutions and Professional Liability, reflecting benign catastrophe experience and distorted frequency/severity trends, offset by higher geopolitical tensions.
The general liability and medical malpractice markets are behaving counter-cyclically to the overall insurance markets. Substantial concerns relate to social inflation, nuclear jury verdicts and the expansion of litigation funding in this market. We do not believe this trend is sustainable, but how this might change in the short-term remains uncertain.
SIMS provides a consistent view of rate movements across specialty markets, allowing carriers to assess how conditions evolve across both new business and renewals. The survey’s detailed segmentation provides a level of result granularity for participants not available elsewhere, with the data highlighting the pace at which market conditions are shifting and support more informed benchmarking and performance management.
About the Specialty Insurance Marketplace Survey (SIMS)
The Specialty Insurance Marketplace Survey (SIMS) is a survey dedicated to insurers who underwrite specialty, high volatility and complex (re)insurance in the London, Bermuda and US E&S insurance and reinsurance markets. WTW publishes SIMS twice yearly, with the next update based on H1 2026 results and the July renewal. Please reach out if you would like to participate.
About Insurance Consulting and Technology
WTW’s Insurance Consulting and Technology business is a global leader in P&C, Life, and Health insurance software and advisory services. With over 1,700 colleagues in 35 markets, we combine deep insurance expertise with leading-edge technology to help insurers navigate complexity and unlock value across pricing, underwriting, reserving, financial and capital modelling, claims, portfolio management, and regulatory reporting.
We’re redefining insurance through innovation and technology. By harnessing Generative and Agentic AI, we’re creating next-generation processes that reduce friction, enhance decision-making, and unlock faster, smarter outcomes for our clients. These capabilities accelerate innovation and enable us to deliver with precision and scale.
More than 1,000 insurers across six continents – including many of the world’s leading insurance groups – trust our unique combination of advisory insight and advanced software to help power their businesses and drive sustainable growth.
About WTW
At WTW (NASDAQ: WLTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. For more information, visit www.wtwco.com.
SOURCE: WTW
Tags: market dynamics, specialty lines, trends, Willis Towers Watson (WTW)