Casualty
Insurance markets should be relatively predictable at renewals in 2026. To obtain the best available rates, terms, and conditions in casualty lines, insurance buyers should consider two elements within their control ahead of renewals:
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Take the time to collect and analyze information, and allow for adequate time to negotiate coverage.
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Work with Lockton to build a strong story with strong information, including loss data, specific details around large claims, loss trends, and operating changes.
Underwriters are trying to de-risk insurance buyers’ casualty programs, so providing as much information as possible will position insureds in the best light.
For example, one Lockton construction client was able to seek a workers’ compensation rate reduction even though the company’s payroll increased by 12%. The organization informed its insurers that it was paying more for skilled labor in a competitive hiring market, yet its man-hours did not change, and neither did its construction project profile or losses. Those details led to a favorable outcome at renewal.
For 2026, construction businesses should be aware that insurers tend to pursue new business aggressively. This requires buyers and their brokers to evaluate where the best options may be and to assess the insurer/policyholder relationship. Is the cost to change insurance partners equal to or more than the expected savings? It’s important to consider those factors in a competitive marketplace.
On excess towers, capacity management is still top of mind for casualty insurers. Insurers are sensitive to their aggregate exposures and may look more closely at clients’ programs in deciding how much capacity to deploy. Operations and exposures — for example, wildfire risks, large fleet exposures, and presence in difficult legal jurisdictions — will dictate what coverage layers look like in excess programs.
