Digital Insurance contacted insurance professionals to comment on property and casualty (P&C) trends for 2026.
Experts suggest the industry is continuing to focus on innovation and implementing predictive analytics.
Responses have been lightly edited for clarity.
Jim Clark, CEO, at HDI Global U.S.
In the 2026 P&C insurance market, we at HDI Global expect businesses to be navigating increasing catastrophic events, ranging from climate-driven natural disasters and emerging cyber threats to rapidly evolving market dynamics. Clients will be looking to insurance companies to go far beyond simply providing traditional insurance coverage, but to act as a true partner in transformation in risk consulting. Businesses are seeking long-term reliability and financial strength from their insurers to ensure stability in their operations. In times of transformation, innovation plays a critical role, and clients are eager for companies that demonstrate a commitment to insuring new technologies and processes
On the ground consulting, especially in the realm of growing natural catastrophes, will be more critical than ever for P&C insurance in 2026. With the frequency and severity of natural catastrophes on the rise, insurers must prioritize prevention and resilience. This means deploying advanced analytics, real-time monitoring, and predictive modeling to help clients identify vulnerabilities and implement proactive measures. Bespoke solutions customized to the unique risk profiles of each business will be essential to truly serving clients' needs and building long-term trust via close dialogue between clients and insurers.
Innovation will be at the heart of the insurance industry's evolution. As clients embrace digital transformation, automation, and new business models, insurers must demonstrate a commitment to covering emerging risks associated with these technologies. This includes developing new products for intangible assets, supply chain disruptions, and evolving liability exposures. The ability to ensure the future, rather than just the present, will set leading carriers' apart.
The insurance industry is seemingly always at an inflection point. Whether driven by risks our clients are facing or new competitive forces. In 2026, successful carriers need organizational muscle that understands evolving risks and exploits domain knowledge. This requires investment in talent, technology, and continuous learning. Insurers must foster a culture of innovation and collaboration, leveraging deep industry knowledge to deliver value beyond the policy.
Isaac McLean, chief underwriting officer, kWh Analytics
The ability to take differentiated underwriting views will become even more important as insurers seek ways to hit growth targets in a softening property market. Unfortunately, some underwriters will not pursue this disciplined approach and will see an impact on their underwriting results. Data will become the backbone of knowing which accounts to pursue and which accounts to pass on due to insufficient policy terms or rate adequacy. Insurers will seek creative ways to use data-driven insights to target opportunities or structure deals. The soft market's pressure on top-line growth, coupled with a stable capital markets environment, will lead to a rise in inorganic growth from strategic buyers.
Rick McCathron, president and CEO of Hippo
Convective storms are becoming more frequent and destructive due to climate change, causing tens of billions in losses annually. As these complex risks intensify, insurers must rethink traditional coverage models and find faster, more transparent ways to help homeowners recover.
Parametric insurance offers one promising path. By using pre-defined triggers such as hail size, wind speed, or rainfall amount, payouts to homeowners can be issued more quickly after an event. These products, combined with stronger home-mitigation strategies and creative policy design, could help insurers reenter high-risk markets. As climate risk grows and standard coverage becomes harder to find, parametric solutions can also help bridge protection gaps and foster more proactive partnerships between insurers and homeowners.
Luke Bills, president of independent agent distribution, Liberty Mutual Insurance
Since the advent of the internet, there has been one industry prediction that has been louder and more persistent than any other: the demise of the independent agent.
Yet, independent agents are doing more business than ever. In fact, they now place 62% of all P&C business, up from 58% just a decade ago, according to the 2016 and 2025 Big "I" Market Share Reports.
We're at a similar inflection point with AI as we were in the early days of the internet. There's been an incredible amount of speculation about how AI will disrupt and displace parts of this industry, including the agent experience. Many of those predictions are bound to be true. The carrier-agent-customer value chain will look very different in 10 years than it does today – technology will become more central to every person and every process, and AI will play a big role in that evolution.
But as risk continues to get more complex for businesses and individuals, the more valuable a trusted advisor becomes. And the greater the market share that independent agents will command.
Larry Millburn, president & COO, U.S. loss adjusting, Crawford & Company
2026 will bring increased personalization in P&C policies, pricing, and claims processes
Artificial Intelligence will have a significant impact on P&C policy pricing and claims processing in 2026. The ability to store, compile, and analyze large amounts of data will drive increased customization throughout the policy lifecycle. On the pricing side, technology will enable more control over policy price customization based on unique details about a property, like building materials, distance from a fire hydrant, or previous claims made on the dwelling. On the claims side, we will increasingly see AI's data and document management capabilities leveraged in coverage determination and fraud detection.
Philip Wray, head of property, MSIG USA
Property market conditions will remain soft in early 2026, with significant capital continuing to flow into the line from carriers that view property as comparatively attractive. The insurer-driven competition has pushed rates down through 2025, though the outlook could shift abruptly if the industry experiences even modest severe event activity.
Global supply chain and geopolitical pressures will continue to shape loss costs and exposures, including tariff-driven material cost increases and export restrictions that complicate rebuilding and recovery following major events.
Reinsurance pricing relief is expected in 2026, with property-per-risk programs seeing rate reductions and catastrophe market softening contributing to further downward pressure.
Jeff Batiste, SVP & GM, U.S. auto and home insurance, LexisNexis Risk Solutions
In both auto and home, carriers are navigating an environment where volatility is the new baseline, from extreme weather events to rapidly evolving driving behaviors and non-moving violations. As risks become more dynamic, and consumers look to better manage their budgets, carriers should consider increasing segmentation and the use of predictive insights to sharpen underwriting, pricing, and customer engagement. These will be key differentiators in 2026 and beyond.
George Hosfield, VP & GM, home insurance, LexisNexis Risk Solutions
As we head into 2026, carriers across the P&C space face a critical inflection point: while claim frequency has declined, severity continues to climb, driven by climate volatility, geographic concentration, and escalating repair costs. Navigating this environment will require insurers to go beyond static risk indicators and embrace more adaptive, AI-enabled solutions that deliver ongoing insight into property condition and evolving peril trends. To stay ahead, insurers must move from reactive strategies to anticipatory ones that layer real-time insights into underwriting, pricing, and resilience planning.
David Sterner, SVP research & development, ACORD
Premium rates will continue to moderate in the coming year, and more lines will enter soft market territory. Investment returns will be pressured by a combination of declining interest rates and increased equity market volatility. As a result, P&C insurers will increase their focus on operational efficiencies to combat declining margins.
