Premiums Declined Across All Account Sizes For First Time Since 2017
In a “decisive sign” of a softened market, respondents to The Council’s quarterly P&C Market Survey reported an average premium decrease across all account sizes for the first time since the third quarter of 2017.
The Council of Insurance Agents & Brokers said commercial property and casualty premiums declined by an average of 1.2% in the first quarter of 2026, compared with a 0.2% increase in the fourth quarter of 2025. The survey covered the period from Jan. 1 through March 31, 2026.
Large accounts saw the largest average decrease, with premiums down 2.7%. Medium accounts declined 1.9%, while small accounts still increased, but only by 1.1%. That small-account increase was down sharply from the prior quarter’s 2.8% rise.
The average increase across the major commercial lines — commercial auto, commercial property, general liability, umbrella, and workers’ compensation — was 0.8%, down from 1.9% in the fourth quarter of 2025. Across all lines included in the survey, the average change in premium was -0.3%.
Property, Workers’ Compensation, and Cyber Led The Declines
Respondents reported average premium decreases in nine lines of business: business interruption, commercial property, construction risks, cyber, directors and officers liability, employment practices liability, marine, terrorism, and workers’ compensation.
Commercial property posted the largest decrease, falling by more than 5%, according to the release. The executive summary reported commercial property down 5.5%, while the release narrative described the decrease as 5.8%.
Workers’ compensation premiums declined by 3.7%, and cyber premiums declined by 3.5%.
The Council said respondents attributed the property decline to more aggressive competition among carriers for both new and renewal business. The report also said 72% of respondents observed an increase in property underwriting capacity, with some describing it as “significant.”
Respondents also reported lower pricing and more favorable underwriting terms and conditions as carriers competed for business. Some noted that even catastrophe-prone property risks saw relief, and that some accounts previously placed in the excess and surplus market were returning to the admitted market.
Commercial Auto Remained The Outlier
Commercial auto continued to move in the opposite direction from much of the market. Respondents reported an average premium increase of 5.8% for commercial auto, the highest increase among all lines included in the survey.
The first quarter also marked the 59th consecutive quarter of increases in commercial auto premiums.
While some respondents noted signs of easing in commercial auto pricing and underwriting, they still described the line as “problematic.”
The release cited increased claim frequency and severity as the continuing source of pressure in commercial auto. According to AM Best, congested roads, distracted driving and litigation have kept claim frequency elevated, while social inflation has contributed to nuclear verdicts that increase claim severity.
AM Best also cited economic inflation, higher vehicle repair and replacement costs, medical cost increases, and the growing amount of technology in vehicles as factors contributing to more expensive claims. The release said those factors have kept commercial auto unprofitable since 2014, except for 2021.
For agents and carriers, the survey indicates that the broader commercial P&C market entered 2026 with increased carrier competition and more available capacity in several lines, while commercial auto continued to resist the broader softening trend.
The full CIAB Report can be accessed here: Home | The Council of Insurance Agents & Brokers
