Staying ahead in today’s insurance marketplace requires sharp insights and the right tools. The 2026 State of the Markets at a Glance deliver insights into key industry trends, emerging risks, and actionable intelligence to help you navigate the marketplace with confidence. Whether you’re assessing market shifts, identifying new opportunities, or fine-tuning your strategy, our latest insights ensure you stay informed and prepared for what is ahead.
ARCHITECTS + ENGINEERS
A few new markets, primarily MGAs, have entered the A&E space, focusing largely on standard, clean accounts. Their presence is driving down pricing for standard risks. However, appetite remains limited for geotech, structural, and residential-heavy accounts, particularly those with significant condo exposure.
Carriers continue to seek premium increases where insured revenues have grown, but competitive pressure is allowing only minimal movement. Most accounts can expect single-digit increases, unless loss history or other risk-specific factors warrant additional rate.
Overall, the A&E market remains stable. On the wholesale side, there is growing opportunity in contractors professional liability and higher-limit excess capacity. A handful of new markets and MGAs are targeting larger placements and increased capacity needs, contributing to a competitive environment, though not one that resembles a hard market or impacts the broader standard market space.
CANNABIS
The cannabis D&O market largely mirrors the broader private company D&O landscape. Market conditions remain generally soft for clean accounts, while larger or more complex risks continue to present challenges. Insureds with strong financials and favorable loss histories are increasingly seeing the removal of cannabis-specific exclusions, the addition of regulatory coverage, and other policy enhancements. Although the number of carriers willing to consider cannabis risks remains limited, there has been gradual expansion as new markets selectively enter the space. Recent discussions regarding the potential rescheduling of marijuana from Schedule I to Schedule III under the U.S. Controlled Substances Act may further influence carrier appetite over time, potentially leading to broader market participation, though any shifts are expected to be incremental.
Cannabis also remains a challenging segment for domestic cyber carriers; however, given the current capacity and selective underwriting approaches available, it is not impossible to secure coverage for qualified risks, particularly those with strong controls and risk management practices.
CRIME
The crime market remains highly competitive heading into 2026, supported by abundant capacity across both the standard and non-standard marketplaces. While submission volume continues to increase, strong competition among carriers has kept pricing very reasonable.
Demand is rising for higher limits and broader coverage, particularly among larger insureds. Social engineering coverage remains widely available despite a noticeable uptick in related claims. To date, many of these losses continue to be absorbed under cyber policies, limiting the impact on crime pricing; however, this dynamic may shift if claim frequency continues to increase. As insureds seek higher social engineering sub-limits, excess crime placements are increasingly being utilized to supplement primary programs. In this environment, it is critical for brokers to coordinate coverage between crime and cyber policies to avoid gaps, overlaps, or unintended coverage disputes.
D&O: DESPAC + SPAC
While we are not seeing a significant increase in SPAC or deSPAC activity, there continues to be a steady level of deal flow, albeit well below the heightened volumes experienced between 2020 and 2022. Importantly, the D&O insurance market for both SPACs and deSPAC transactions has stabilized, with ample capacity now available. As a result, pricing for both structures has become meaningfully more competitive. In addition, coverage terms, particularly retention levels, are considerably more favorable than those seen in the market several years ago.
D&O: PRIVATE/NON-PROFIT
The Private and Non-Profit D&O market remains firmly in a soft cycle, driven by abundant capacity and sustained competitive pressure among insurers. Coverage continues to be relatively inexpensive, and many accounts are being placed or renewed within the standard market. As a result, a greater share of business is remaining with retail brokers, even as claims activity has shown a modest uptick. Despite this increase in claims, underwriters have largely maintained favorable pricing and broad terms across most classes.
While the overall environment remains soft, certain historically challenging classes continue to experience heightened underwriting scrutiny. Social services, foster and adoption organizations, political action committees (PACs), education, and healthcare risks remain more difficult placements compared to the broader market. Although some stabilization has been observed, these sectors continue to face more restrictive underwriting, tighter terms, and less flexibility than other segments. Additionally, financially distressed organizations are expected to encounter increased challenges, particularly in light of the significant rise in bankruptcy filings observed throughout 2025.
Looking ahead, market conditions in 2026 are expected to closely resemble those of 2025. Excess capacity is anticipated to continue driving pricing and competition across the Private and Non-Profit D&O marketplace, with pricing generally expected to be flat to down approximately 5%. However, several emerging headwinds could begin to pressure insurer profitability and impact insureds. These include rapid technological change, heightened regulatory activity, ongoing economic uncertainty, evolving cyber exposures, and in-creased merger and acquisition activity. While these factors have not yet materially shifted the market cycle, they warrant close monitoring as potential catalysts for future market adjustments.
D&O: PUBLIC
Capacity in the Public D&O market remains strong entering 2026, particularly within the excess layers. After a prolonged soft market over the past two to three years, most D&O programs have returned to, or improved upon, pre-2019 to 2021 hard market premium levels and retentions. Throughout 2025, many insureds continued to benefit from premium relief; however, further reductions will be more difficult to achieve in 2026.
Most insureds should expect flat to low single-digit premium reductions on primary coverage, with excess carriers largely following suit. Competition for excess layers remains fierce, and expectations are for excess pricing to stay soft, especially for programs where significant rate has already been taken out. Record levels of both primary and excess capacity continue to be the primary driver of these conditions, as carriers remain acutely aware that failing to compete often results in displacement.
Insurers are deploying capital aggressively, resulting in broader coverage offerings without material increases in premiums or retentions. Notably, carriers are demonstrating increased flexibility around coverage enhancements, including expanded Entity Investigation Coverage. While a limited number of market participants have exited the space, the abundance of capacity is expected to sustain favorable conditions through 2026.
That said, select carriers, typically smaller or newer market entrants whose portfolios cannot absorb multiple large limit losses, are beginning to draw firmer lines on minimum price per million, particularly for large market-cap or challenged risks. As always, exceptions to the broader market trends persist, driven by factors such as industry class, regulatory exposure, claims history, stock volatility, and overall risk profile.
Although there is no expectation of a near-term market correction, underwriters are increasingly cautious about further rate decreases. Profitability remains the “elephant in the room,” particularly given the ongoing rate deterioration and the long-tail nature of D&O claims. Securities class action (SCA) filings continue to trend modestly upward, though the ultimate loss development for many of these claims will not be fully realized for years.
Looking ahead, additional risk factors influencing the Public D&O landscape include:
- Deregulation under the new administration;
- Elevated stock market valuations and historically high market capitalizations, increasing the likelihood of larger settlement values;
- A long-anticipated rebound in the IPO market, supporting premium growth for carriers; and
- The expanding use of artificial intelligence, which, while not currently regulated, will likely face future regulatory scrutiny.
Lastly, many Public D&O programs, particularly in the small to middle-market capitalization segment, continue to be sold primarily on price and retention. In an increasingly competitive and nuanced market, the role of a qualified broker Price of Premium specializing in Public D&O is critical to securing the broadest and most appropriate coverage available.
ENERGY
The energy sector continues to demonstrate relative stability in 2026, particularly for well-performing, preferred risks, while smaller or less desirable accounts may still face placement challenges. From an insurer perspective, energy remains an attractive sector, supported by generally strong financial performance across much of the industry and steady investor acceptance of commodity price volatility driven by supply, demand, and geopolitical factors. However, average oil prices are currently lower than the average levels seen over the past three years, prompting underwriters to apply increased scrutiny to certain segments of the market.
Exploration and production (E&P) companies remain well positioned overall, though organizations with higher financial leverage or more complex capital structures can present additional underwriting considerations within the professional lines space. For smaller E&P operators, questions around breakeven pricing are becoming more prominent, while oilfield services companies are facing increased underwriting focus on customer concentration and potential counterparty bankruptcy exposure. Environmental, social, and governance (ESG) considerations continue to influence underwriting appetites, with certain segments, most notably coal, remaining challenging and facing limited coverage options. Outside of ESG-sensitive risks, capacity remains plentiful, with multiple insurers actively competing for energy business.
The professional liability market for energy remains soft, with Directors & Officers (D&O) coverage continuing to be especially competitive. Public company D&O pricing remains highly aggressive, even amid valuation increases seen under the current presidential administration. Primary public D&O carriers are generally advising renewal premiums that are flat or near flat, while offering broader coverage at these lower premiums. Coverage enhancements increasingly available include entity investigation coverage, removal or narrowing of pollution exclusions, lower retentions, and, where applicable, broader antitrust protections, typically for modest additional premium.
The private company D&O market remains stable and is tracking in line with broader private D&O trends, with intense carrier competition continuing to apply downward pressure on pricing. In this environment, full antitrust coverage has become increasingly attainable and remains a key best practice for private D&O energy insureds.
The cyber insurance market is tracking similarly, with ample capacity and a broad range of carriers actively writing energy risks. Claims activity has remained largely disconnected from oil price volatility; however, underwriters continue to place strong emphasis on cyber hygiene, including controls such as multifactor authentication (MFA) and endpoint detection and response (EDR).
Within the renewable energy sector, policy uncertainty has emerged as a key underwriting consideration. Recent changes in government policy and potential shifts in subsidy availability are prompting enhanced scrutiny of project funding structures and long-term viability. Underwriters are increasingly focused on how renewable energy companies plan to finance projects and whether policy developments have influenced corporate strategy or risk profiles.
E&O
The E&O marketplace continues to see significant expansion, particularly within the miscellaneous E&O segment, where numerous new entrants, especially small and online-focused programs, are increasing competition. This has created an extremely competitive environment for miscellaneous professional liability (MP), driving down rates and offering buyers abundant options.
Traditional E&O classes such as lawyers, insurance agents, and accountants remain more stable, with fewer new insurers entering these segments. Pricing and underwriting are steadier here compared to the rapidly evolving miscellaneous space.
Overall, the market mirrors trends seen in D&O: ample capacity, very inexpensive rates, and a surge of new programs contributing to a soft, buyer-friendly landscape. While most risks are easy to place, small pockets of difficulty persist, particularly in real estate–related exposures and certain quasi–financial institution categories. Even so, coverage is still generally inexpensive and readily available across much of the E&O market.
EPL
The EPLI market remains firmly in a soft cycle, supported by strong employment levels and generally favorable claims trends. Most insureds are experiencing flat renewals, while organizations with recent loss activity or significant workforce growth are seeing modest premium increases in the range of 3% to 5%. Overall capacity remains ample, and competition among carriers continues to support favorable pricing and terms for well-managed risks.
While there is ongoing speculation that broader economic shifts, increased adoption of artificial intelligence, or rising biometric privacy litigation could lead to workforce reductions and an eventual uptick in EPL claims, no material market impact is expected in the near term. As a result, underwriters have largely maintained stable pricing and coverage positions heading into 2026.
That said, underwriting scrutiny has increased in certain areas. Carriers are paying closer attention to exposures involving highly compensated employees, given the severity potential associated with related claims. Additionally, EPL trends continue to closely mirror those in the Private and Non-Profit D&O markets, as these coverages are frequently packaged together and influenced by similar capacity and competitive dynamics.
Jurisdictional and industry-specific pressures remain key differentiators. In more challenging venues such as California and Illinois, the EPL market continues to be more restrictive, with tighter underwriting standards and firmer pricing. Certain industries, including healthcare, retail, and technology, are also experiencing more constrained terms as insurers respond to higher loss frequency and evolving employment-related risks. Outside of these jurisdictions and sectors, however, EPLI conditions remain consistent with the broader soft market: competitive, well-capitalized, and favorable for buyers.
FIDUCIARY LIABILITY
The Fiduciary Liability market continues to operate in a soft environment, supported by strong competition among insurers and generally stable pricing across most account types. Coverage remains readily available, and terms are largely favorable for well-performing risks. However, newly formed Employee Stock Ownership Plans (ESOPs) remain a notable exception, as underwriters continue to approach these structures with caution. Capacity for new ESOPs is more limited, and underwriting scrutiny remains elevated given their historically higher loss potential.
At the same time, ERISA litigation trends are evolving and warrant close attention. There has been a continued increase in excessive fee litigation involving retirement plans, along with claims alleging breaches of fiduciary duty. Additionally, health plan governance and fee arrangements are facing heightened scrutiny, contributing to a more complex risk environment for fiduciaries, even as overall market conditions remain favorable.
Despite these challenges, the Fiduciary Liability segment presents a growing opportunity. Brokers and carriers have made meaningful progress in articulating the value of fiduciary coverage, leading to greater buyer engagement and broader adoption across eligible organizations. This increased awareness has helped sustain demand in an otherwise competitive market. Nevertheless, companies structured as ESOPs continue to face comparatively higher pricing and fewer available market options, reflecting their elevated risk profile and the ongoing caution exercised by insurers in this area.
FINANCIAL INSTITUTIONS
The Financial Institutions (FI) market remains highly competitive, supported by abundant capacity across both primary and excess placements. Market dynamics continue to be driven primarily by lead professional liability exposure, while ample capacity remains available for other lines, including D&O, EPL, Fiduciary Liability, and Financial Institution Bonds.
Asset management classes, including private equity firms, investment managers, and fund-related business, remain attractive to underwriters and continue to benefit from strong competition across most coverage lines. However, we are beginning to see signs of market firming for large Private Equity firms, driven by increased claims frequency and severity within the sector. This heightened loss activity is largely attributable to the rapid expansion of policy language and coverage enhancements that buyers have benefited from in recent years, prompting a more cautious and disciplined underwriting approach from carriers.
In contrast, competition for lead professional liability coverage has become more limited for certain financial institution classes, including broker-dealers, depositories, and insurance companies, where underwriters are applying increased scrutiny to risk profiles, loss experience, and coverage structure.
PUBLIC ENTITY + EDUCATION
The public entity and education marketplace includes certain segments that continue to drive difficulty. Utilities persist as one of the most problematic classes for insurers, while charter and private schools present increased opportunity accompanied by heightened underwriting scrutiny. Overall market conditions are stable with slight tightening, as carriers adopt a more cautious posture in response to loss trends and the unique exposures associated with public sector and educational risks. While capacity remains available, underwriting discipline is increasingly evident, resulting in a marketplace that is more challenging than many other professional lines segments.
Within professional lines, including Public Officials Liability, Educators Legal Liability, and School Board Legal Liability (each typically incorporating Employment Practices Liability), loss trends continue to be a headwind. However, market competition remains strong, particularly in the excess layers, where additional carriers have shown willingness to participate. In response to severity concerns, carriers are tightening coverage terms, with more frequent use of anti-trust limitations and a growing focus on financial distress–related exclusions. Expertise remains critical in this segment, as policy wording is not standardized and can vary materially by primary carrier form, creating meaningful differences in coverage breadth from one placement to the next. Similar to 2025, pricing for these lines is generally seeing single-digit increases. For accounts that are marketed intentionally and early, flat renewals, and in some cases modest savings, remain achievable, particularly for insureds with favorable loss experience.
Cyber market conditions for public entity and education risks continue to be shaped by two key factors: a broadly soft cyber market and a growing perception among carriers that this segment has comparatively favorable loss experience relative to other industries. Together, these dynamics are expanding the universe of interested markets, as the space has evolved from one served primarily by specialists to one increasingly pursued by a broader group of carriers. This positive experience is being driven by three primary factors. First, insureds across the sector have made meaningful improvements in cyber controls over the past two to three years. Second, loss severity is often moderated, as traditional business interruption and loss-of-income exposures do not typically apply in the same manner as they do for commercial enterprises. Third, historical rate levels in this segment have not declined as aggressively as in other areas of the cyber market, helping preserve underwriting appetite even as overall pricing continues to soften.
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