Specialty Insurance Rates Fell Back to 2020 Levels : WTW

According to a new report by WTW, Specialty insurance rates declined faster than expected in 2025 and during the January 1, 2026 renewals, The company’s Specialty Insurance Marketplace Survey (SIMS) shows that pricing levels have now returned to where they stood in 2020.

WTW said the market has experienced a sharp turnaround after years of strong rate increases. Between 2017 and the market peak in 2023, specialty insurers achieved an estimated cumulative rate rise of about 45%. However, nearly half of those gains have been lost over the past two years as competition increased and market conditions softened.

The survey revealed that the insurance rate index fell by 10 points during the latest renewal season. According to WTW, expected underwriting performance in 2025 has dropped back to levels last seen in 2021 after adjusting for exposure trends. The report also noted that 2025 became the first year since 2018 in which pricing adequacy for new business was lower than for renewal business.

The steepest declines were recorded in property and energy insurance, followed by marine, financial institutions, and professional liability lines. WTW linked the reductions to lower catastrophe losses and changing claims trends, although geopolitical tensions continue to create uncertainty in global markets.

In contrast, general liability and medical malpractice insurance continued to resist the wider market trend. The report highlighted concerns over social inflation, nuclear jury verdicts, and the growing influence of litigation funding in these sectors.

During the January renewals, 75% of the 42 major specialty insurance classes recorded rate decreases on a gross-of-claims-trend basis, compared with 30% in 2024.

WTW added that claims trend analysis provides a more accurate view of profitability movements across the industry. Overall specialty insurance rates fell by 5% gross of claims trend and by 8% after adjusting for actuarial estimates of rising claims costs.

The SIMS survey represents nearly $250 billion in gross written premium over a 10-year period, including around $45 billion in 2025, and covers specialty insurers across the London, Bermuda, and U.S. excess and surplus markets.

Richard Clarkson, global market leader for Global Specialty at WTW, said the survey offers insurers a clearer picture of market conditions using direct industry data rather than broker estimates. He noted that insurers use the findings to evaluate business plans, monitor pricing trends, and support reserving decisions.