2026 Anticipations in Property/Casualty Insurance Market
Anticipations for 2026 in the Property/Casualty Insurance Market
Leaders from prominent property and casualty (P/C) insurance companies recently shared insights into their strategies and expectations during evolving market conditions. Despite a weaker premium growth in the fourth quarter of 2025 compared to the entire year, discussions highlight confidence in navigating market shifts through diversified portfolios and technological advancements. P/C insurers are embracing AI-driven innovations to optimize operational efficiencies.
Industry Performance Insights
Publicly traded North American P/C insurers reported an average 5% increase in net premiums in the fourth quarter of 2025 compared to the same period in 2024. The combined ratios, critical for assessing profitability, saw an improvement by just over a point on average. For the entire year, net premium growth approached 8%, with the average combined ratio enhancing from nearly 91 in 2024 to approximately 89 in 2025.
Progressive Insurance stood out with an 11.8% premium increase in 2025, primarily driven by a 15% rise in personal auto rates. In contrast, companies such as Travelers and The Hartford reported slower growth in personal lines, highlighting varied strategies in underwriting and risk management.
Commercial Lines and Strategic Differences
Shifts in commercial lines were notable, with RLI reporting a slight decrease while AXIS Capital saw a 12.8% increase. RLI's CEO, Craig Kliethermes, emphasized a strategy favoring sustainable growth, while W. Robert Berkley, Jr. of W.R. Berkley noted a 7% rate growth in non-workers compensation lines.
With an increasing focus on regulatory compliance requirements and employing AI-driven tools, insurers are enhancing operational capabilities, which may impact employment segments within the industry. This trend reflects a shift towards digital transformation as a key competitive advantage.
Company-Specific Developments and Forecasts
AXIS Capital: Achieving the highest growth in fourth-quarter premiums with a near 13% increase, AXIS's expansion into specialty markets has been pivotal. CEO Vincent Tizzio attributes this success to operational efficiencies and anticipates continued insurance growth, with a possible reduction in reinsurance premiums.
The Hartford: With an AI-centric approach, The Hartford reported an 8% growth in business insurance premiums for 2025. CEO Christopher Swift cited technological advancements as crucial for maintaining a competitive edge, aligning with broader industry trends in regulatory compliance and innovation.
Selective Insurance Group: CEO John Marchioni outlined a strategy emphasizing underwriting profitability with a combined ratio forecast between 96.5 and 97.5 for 2026. Technological investments are essential for supporting growth and improving decision-making processes.
These companies are investing in technology and innovation as core strategies to realize efficiencies and enable growth. A focus on underwriting discipline and strategic expansion continues, navigating a complex market landscape with an eye toward sustainable growth and operational excellence.