The excess and surplus property market is characterized by excess capacity, favorable rates and aggressive competition. In this highly commoditized environment, pricing rules, but strategic placement becomes the differentiator.

This is especially true as niche liabilities such as catastrophe-driven exposures and new construction materials enter active consideration for most clients. Maximizing market conditions without losing sight of long-term program stability is the key to success for brokers in 2026.

Market snapshot

While broad market conditions are favorable, risk characteristics continue to influence outcomes.
Where we're seeing strong competition and pricing relief:
  • Real estate portfolios
  • Hospitality accounts
  • Public entities and educational institutions
  • Larger layered/shared programs
  • Well-performing risks with favorable loss histories
Where we're seeing underwriting scrutiny:
  • Wildfire-exposed properties
  • Data centers and large-scale technology infrastructure
  • Frame construction
  • Heavy manufacturing and wood-related operations
  • High-hazard catastrophe-exposed locations

Turn Pricing Relief into Coverage Improvements

The softening market is creating opportunities to improve coverage without significantly increasing spend. Many insureds can now restore limits, reduce deductibles or expand protection at a lower cost than was possible during the hard market.

Take action: During every renewal, conduct a coverage review before presenting pricing. Identify limits that were reduced during prior market cycles, evaluate deductible reductions and explore catastrophe (Cat) coverage enhancements. Provide data evidence to your clients to show how today's market can improve protection, not just reduce premiums.

Focus on Capacity Quality

The market is benefiting from a surge of new entrants and alternative capacity providers. While this competition is helping drive rate reductions, not all capacity is created equal. Some newer entrants haven't yet been tested through significant claims activity or a full market cycle.

Take action: When evaluating quotes, look beyond premium reductions. Assess the carrier's claims reputation, financial strength, underwriting consistency and commitment to the segment. A modest premium saving is unlikely to offset the disruption of losing capacity or support when market conditions change.

Use Shared and Layered Structures Strategically

As carriers compete for participation, brokers have greater flexibility to construct programs that combine capacity from multiple markets, while maintaining competitive pricing. These structures also reduce dependence on any single carrier.

Take action: For larger or more complex risks, evaluate whether a shared or layered structure could improve flexibility, coverage options or long-term stability. Building programs across multiple carriers can make future renewals easier to manage if a market changes its appetite, pricing or capacity deployment strategy.

Ensure That Coverage Is Aligned to Risk Profile

The current market offers more than premium savings. Buyers are regaining access to limits, deductibles and coverage options that became difficult or expensive to obtain during the hard market. Some insureds are purchasing additional catastrophe limits, reducing deductibles or restoring coverage that was previously removed to control costs.

Take action: Don't frame renewals solely around rate reductions. Use the conversation to reassess whether coverage remains aligned with the client's current risk profile. Consider opportunities to buy back limits, improve terms, reduce retentions or strengthen catastrophe protection while market conditions remain favorable.

Differentiate CAT-Exposed Risks Through Data Storytelling

Wildfire, severe convective storms, hurricanes and other catastrophe-driven exposures remain areas where underwriting discipline is strongest. Carriers are increasingly focused on mitigation efforts, exposure management and risk quality when making capacity decisions for these risks. Analytics and catastrophe modeling are also playing a larger role in underwriting conversations. Tools that quantify probable maximum loss, catastrophe exposure and mitigation effectiveness are becoming increasingly important.

Take action: Build a stronger underwriting narrative around catastrophe-exposed accounts. Highlight mitigation investments, operational improvements and resilience measures. Support submissions with exposure analysis and relevant risk data whenever possible. Accounts that clearly demonstrate risk management discipline are more likely to secure favorable terms and capacity.

Ready to make the most of today's buyer-friendly market?

Discover our experts' insights in our new 2026 RPS Property Market Outlook report.

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Disclaimer

The information contained herein is offered as insurance industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication isn't intended to offer financial, tax, legal or client-specific insurance and risk management advice. Any description of insurance coverages isn't meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein don't include complete insurance policy definitions, terms and/or conditions and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Risk Placement Services, Inc. IL License No. 100294602 DBA in California as Risk Placement Services Insurance Brokers. CA License No. 0C66724.