You are currently leaving the MSIG USA website to a site not hosted by MSIG USA.
2026 Trends and Predictions
Head of Financial Lines, David Guild, and Head of Property, Philip Wray, share their predictions for 2026 in Digital Insurance’s New and Emerging Risk Trends roundup.
Property Predictions:
Property market conditions will remain soft in early 2026, with significant capital continuing to flow into the line from carriers who view property as comparatively attractive. The insurer-driven competition has pushed rates down through 2025, though the outlook could shift abruptly if the industry experiences even modest severe event activity.
Global supply chain and geopolitical pressures will continue to shape loss costs and exposures, including tariff-driven material cost increases and export restrictions that complicate rebuilding and recovery following major events.
Reinsurance pricing relief is expected in 2026, with property-per-risk programs seeing rate reductions and catastrophe market softening contributing to further downward pressure.
Financial Lines Predictions
D&O will reach an inflection point in 2026, as pricing flattens, and carriers contend with a steady cadence of securities class actions and rising settlement costs. Market profitability concerns are expected to drive carrier consolidation and withdrawals across Financial Lines.
AI-washing will emerge as a key driver of D&O severity, with plaintiffs targeting companies that exaggerate AI capabilities in disclosures. Boards should demonstrate governance through documented model oversight, testing, and accurate disclosures.
Governance and disclosure practices around supply chain risk will be central to underwriting levers, as volatility in global trade and tariffs exposes companies to unforeseen operational and reputational risks.
