Global catastrophe losses are mounting, yet the property market remains soft. What does this mean for pricing, capacity, and insureds heading into 2026? Explore how abundant capital, competitive terms, and late-season hurricane risks are shaping the marketplace, and why now is a pivotal moment to act.
As 2025 begins to draw to a close, the property insurance marketplace faces a unique paradox: significant global catastrophe losses alongside persistently soft market conditions. With ample capacity, competitive pricing, and broader terms, insureds are benefiting, but looming hurricane risks could shift the balance.
GLOBAL LOSS ENVIRONMENT
To date, global insured losses are estimated at $80 billion, with two events driving much of the impact:
- The Los Angeles wildfires, contributing roughly $40 billion in losses.
- Severe convective storm (SCS) activity in the first half of the year, added an estimated $31 billion.
Projections suggest that global insured losses could reach as high as $145 billion by year-end, reflecting the increasing volatility of catastrophe exposures.
HURRICANE SEASON OUTLOOK
The Atlantic hurricane season has been relatively quiet, but the most active portion of the season lies ahead. Historically, late-season storms have produced some of the most significant market-changing events. For example, 1992 remained quiet until Hurricane Andrew developed late in the season, ultimately reshaping both the market and coverage structures for years to come. The absence of early-season activity should not be viewed as a guarantee of safety, as a single major event has the potential to alter the current market trajectory.
MARKET CONDITIONS + CAPACITY
Despite losses, abundant capacity continues to flow into the property market, much of it through CAT bonds and insurance-linked securities (ILS). This capital, combined with competitive pressure from incumbents and new entrants, is sustaining soft conditions.
Restructured programs continue to produce the strongest client outcomes, with rate reductions in the 5–20%+ range, subject to account-specific factors. Broader terms are becoming more prevalent, including an expansion of blanket coverage.
AOP deductibles have declined to $25,000 for most classes, though larger frame habitational risks remain at $100,000 minimums. Named Windstorm (NWS) deductibles are trending down to 2–3% (outside of Tri-County FL), with capped solutions available on select risks. Convective storm deductibles are also being reduced. Accounts with older roofs are facing higher percentage deductibles for CAT perils.
SHARED + LAYERED PROGRAMS
Shared and layered placements continue to see strong competition, especially for larger programs. Deals are achieving 5–20%+ rate reductions, with London markets remaining particularly aggressive.
Carriers are expanding their capacity in primary and excess layers, reducing the number of participants required to fill placements. New capacity continues to drive pricing downward. Admitted carriers are broadening their appetite across additional classes, expanding opportunities for insureds.
OUTLOOK
The remainder of the hurricane season will be pivotal in determining how the market closes out 2025. If conditions remain benign, current dynamics including soft pricing, competitive terms, and ample capacity, are expected to continue.
Attention is now turning to the January 1 reinsurance treaty renewals, which will help set the tone for Q1 2026. While insureds are currently benefiting from favorable conditions, the balance between available capital and catastrophic loss potential remains highly sensitive to late-season activity.
BOTTOM LINE
CRC Specialty is uniquely positioned to help clients capitalize on today’s property market conditions. Our deep market relationships, expertise in structuring programs, and ability to access both domestic and international capacity ensure the best outcomes for insureds. Whether navigating shared and layered programs, negotiating broader terms, or securing competitive deductibles, CRC Specialty is your trusted wholesale partner for property coverage needs. Reach out today.
CONTRIBUTORS
- Daniela Mills is CRC Specialty’s National Property Director.
END NOTES
- Map: How big are the LA fires? Use this tool to overlay them atop where you live, Cal Matters, January 13, 2025. https://calmatters.org/environment/wildfires/2025/01/la-fires-size-mapped/
- How active has the 2025 hurricane season been?, USAFacts, September 18, 2025. https://usafacts.org/answers/how-active-is-the-latest-hurricane-season/country/united-states/