The general casualty insurance market enters 2026 as a nuanced and multifaceted landscape for brokers, carriers and buyers. Some areas, such as light manufacturing and professional service industries, are experiencing softening trends — especially in the primary lines — while others remain moderately firm. Ania Caruso, CPCU, National Casualty president at RPS, explains, "It all comes down to an account's risk profile and its jurisdiction."

Accounts with a clean loss history or operating in low-hazard industries are reaping the benefits of heightened competition fueled by today's softening property and stable management liability insurance lines. On the flip side, higher-hazard or loss-prone risks, particularly those located in litigious states, continue to face challenging renewals and increasingly stringent underwriting standards.

In an uneven casualty landscape, the Excess and Surplus (E&S) market emerges as a pivotal resource, offering both capacity and flexibility for middle-market and risk-managed accounts, according to Caruso.

"The E&S space really serves as a pivot point for innovation," she says. "Because of its freedom of rate and form, the E&S market can respond quickly to emerging risks and provide solutions where the standard market can't."

Market Dynamics and Pressure Points

A myriad of factors continue to impact casualty lines (General Liability, Auto and Excess), including third-party litigation funding and its role in rising claims costs and driving nuclear verdicts.

"Jurisdictions differ widely in how they regulate third-party litigation practices, leaving carriers to navigate unpredictable legal environments," explains Caruso.

Excess Liability attachment points, particularly over the primary Auto policy, remain challenging. The traditional $1 million Commercial Auto attachment, unchanged since the 1980s, no longer reflects inflation or current claim severity.

"There's pressure from carriers to raise attachment points," Caruso says, "but many primary markets can only work with $1 million or $2 million limits. Excess markets are looking for $5 million, $6 million and even $7 million, and finding a balance between the two can be difficult."

At the same time, capacity deployment has undergone a significant transformation. Where carriers once offered $25 million or $50 million blocks of limit, many are now deploying only $5 million or $10 million. Building an umbrella and excess towers has become more time- and labor-intensive, often requiring multiple carriers. This process also necessitates meticulous alignment of policy terms and conditions across the placement.

"It's not just about capacity; it's also about contract certainty," says Caruso.

Emerging Risks and E&S Solutions

Litigation trends and escalating loss costs aren't confined to one sector. Social inflation and nuclear verdicts with multimillion-dollar settlements and judgments continue to impact a diverse array of niches, including construction, transportation, real estate, healthcare and others. Emerging exposures, such as per- and polyfluoroalkyl substances (PFAS), have also led to rising pollution liability claims and litigation.

The E&S market can step in and provide coverage for pollution exposures often excluded by the standard market, says Caruso. This ability to adapt coverage to emerging risks, she said, is what makes the E&S segment critical in today's environment.

"It's where creativity and underwriting flexibility meet the real-world needs of the insured."

Turning Specialization and Partnership to Your Advantage

Caruso also emphasizes the indispensable value of specialization and partnership in navigating today's fragmented casualty market.

"There's a critical value in partnering with wholesale brokers who specialize in industry niches," she says. "Those with experience in hospitality, transportation, construction or manufacturing, for example, can translate complex exposures into actionable strategies and customized coverage."

For retail brokers, working with niche-focused wholesalers offers more than access to markets.

"This isn't just about placing coverage," Caruso explains. "It's about co-creating solutions that proactively mitigate risk, reduce claims and ensure contract certainty. We become an extension of a retail broker's team."

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