Excess Insurance Premium Growth Slowed Significantly
The growth rate for specialized insurance premiums has cooled as new capital enters the market.
Updated on Oct. 13, 2026 in Insurance
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Excess and surplus insurance premium growth slowed to 2.8% in the first half of 2026, a notable decline from the 13.2% growth seen during the same period in 2025. This shift reflects broader changes in insurance availability and market competition.
Why it matters
An influx of new capital from private equity firms, reinsurers, and fronting companies has increased competition, putting downward pressure on prices. This trend is shifting market conditions for businesses and individuals seeking specialized insurance coverage.
Excess and surplus lines premium volume grew by 2.8% in the first half of 2026, trailing the 13.2% growth recorded in the first half of 2025. Meanwhile, some property insurance rates have fallen between 30% and 40%.
The players
AmTrust
An insurance provider that maintains operations for excess and surplus lines in Kansas City, Missouri.
Westfield Specialty
A provider of specialized insurance products with corporate office functions in Alpharetta, Georgia.
Navigators
An insurance entity providing underwriting and coverage services with a regional office in Philadelphia.
The details
The recent slowdown in premium growth is largely driven by an influx of excess capital into the excess and surplus market. This increased capacity has prompted some insurers to lower costs, with property rates in some areas seeing declines of 30% to 40%. Conversely, financial lines renewal rates have moved in the opposite direction, increasing 2.5% year-to-date through September 2026, following a 1.5% decrease during the same timeframe in 2025.
Timeline
First half 2025 saw E&S premium volume grow by 13.2%.
First half 2026 saw E&S premium volume grow by 2.8%.
Year-to-date through September 2026 saw financial lines renewal rates increase 2.5%.
Year-end 2026 projections estimate property rate declines of 15%.
Money Landscape
The current shift in premium growth follows the historical volatility of excess and surplus lines pricing cycles. This cooling of growth rates marks a departure from the rapid expansion observed throughout 2025.
Policyholders may find more favorable pricing for property coverage, but should be prepared for potential cost increases in financial lines. Households and business owners should consult a qualified insurance professional to evaluate how these market changes affect their renewal premiums.
The takeaway
The insurance market is currently experiencing a cooling trend in premium growth alongside significant rate volatility for specific policy types. Keep a close watch on your next renewal statement and discuss any rate fluctuations with your licensed insurance professional.
Further reading
For more on managing your coverage, review our guide to Insurance.
Source note: This article includes information reported by Business Insurance.
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