P&C Market Update, August 2026

Ryan Daniele| August 19th, 2026

Risk Management

Another quarter, another mixed bag for the commercial insurance market. Although we aren’t seeing the kind of drastic shifts so common over the past few years, there are a few gains (and pains) happening in property and casualty this quarter. Here are some of my takeaways.

In short: The commercial insurance market continues to favor buyers in most lines. We’re seeing rate reductions and more favorable terms for many insureds arising from:

Increased carrier appetite

Growing underwriting capacity

Improved reinsurance conditions

Heightened competition

Commercial auto still tough

Casualty lines, particularly commercial auto and excess liability, are a different story. Commercial auto rose 5.8% in Q1, and although the Q2 numbers aren’t in as I write this, I expect this will continue to be the most difficult segment based on the challenges of:

Nuclear verdicts

Social inflation

Escalating vehicle repair costs

Increased medical severity

Driver shortages and workforce challenges

Many of my clients are losing sleep over this one, and I’m getting questions about it every day. It’s a tough environment, but you do have some options for improving your lot.

reducing risk in commercial auto

Every day is a great day to address risk in commercial auto, but today may be especially productive. In a tough market, doing everything you can to make your organization attractive to carriers is absolutely essential—and pays off in a dozen other ways.

Start by thinking about where you stand on the following concerns.

Safety manual: Is your fleet safety manual up to date and comprehensive? Does it meet all DOT standards? Do you maintain ongoing training on safety?

Driver hiring practices: Have you documented minimum standards for qualified drivers? Are you running background checks? Is there a minimum age requirement?

Safety implementation: Are you utilizing technology like telematics and driver monitoring platforms to improve driver behavior? Do you regularly check drivers’ motor vehicle records for violations? Is your maintenance program well-defined and rigorously followed?

Employee-owned vehicle use: Have you outlined authorized business use for employee-owned vehicles, including minimum insurance requirements? Do you ensure employees who use personal vehicles for company business have appropriate liability limits?

Adequate insurance coverages: Do you partner with a dedicated team for managing fleet exposures, reviewing incidents, monitoring trends, and coordinating corrective actions?

Taking steps like these protects your assets and your reputation will giving you better coverage options.

And a final (positive!) note about P&C

Fortunately, I can leave you with some good news: For most of our P&C clients, Q3 2026 presents one of the strongest marketing environments since before the hard market began in 2020. Greater carrier competition can mean wins for you.

Organizations with favorable loss experience, accurate property valuations, and strong risk management practices will want to leverage increased carrier competition to pursue:

Rate reductions

Coverage enhancements

Lower deductibles/retentions

Higher limits

Expanded carrier participation

There is a flipside to that opportunity, and it applies to clients who have significant auto, fleet, transportation, or severe casualty exposure. With commercial auto playing catch-up, you can expect continued underwriting scrutiny. But that doesn’t leave you with no means to better your own position. This is a perfect time to focus on loss control initiatives that’ll protect your future.

Reach out today for more details or your own tailored recommendations.