{"id":1004807265,"date":"2026-08-06T09:50:59","date_gmt":"2026-08-06T17:50:59","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004807265"},"modified":"2026-08-06T09:51:01","modified_gmt":"2026-08-06T17:51:01","slug":"inside-cres-softening-insurance-market","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/inside-cres-softening-insurance-market\/","title":{"rendered":"Inside CRE’s Softening Insurance Market"},"content":{"rendered":"
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The property insurance market continues to improve for commercial property executives. Rates have dropped nationally, providing owners with the opportunity to increase coverage at new rates or invest in hardening their properties. But prices are still elevated in high-risk markets like California and Florida, and more rigorous underwriting could make it harder for some owners in lower-risk markets to get favorable terms.<\/p>\n\n\n\n

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According to Marsh<\/a>, property insurance rates fell by 10 percent in Q1 2026 compared with an 8 percent drop in the previous quarter. Renewal rates for non-catastrophe-exposed properties have declined about 7 percent year-over-year. Properties with catastrophe exposure<\/a> saw declines of about 16 percent.<\/p>\n\n\n\n

\u201cThese accounts experienced the most significant premium increases between 2022 and 2024, so had more room to fall,\u201d noted Xander Snyder, economist for First American Financial Corp.<\/p>\n\n\n\n

Rates vary by sector, with office, retail and hospitality generally benefiting from the same broader market conditions, while hospitality and manufacturing have always been underwritten with their specific exposures in mind, noted Joffre Mishall, who heads Large Property for U.S. National Accounts at Zurich Insurance Group.<\/p>\n\n\n\n

After several years of corrective pricing, the cost of reinsurance treaties also dropped beginning with renewals in January 2026, pointed out Marc Gordon, principal, co-president & CFO at Investors Management Group.<\/p>\n\n\n\n

His firm\u2019s reinsurance renewal quotes of roughly 15 percent below expiring premiums were reflected in broker data, with multifamily rates down 5 to 15 percent. Gordon said that property rates overall are projected to decline about 4 percent on average through the rest of the year.<\/p>\n\n\n\n

Additionally, deductibles are generally maintaining or decreasing slightly, while available limits are increasing due to an oversupply of insurance capacity in the market, said Mishall.<\/p>\n\n\n\n

During the hard market, storm deductibles increased by 5 percent, with some carriers pushing them up to 15 percent, said Michael Brodie, managing director at Howden U.S. & co-leader of the firm\u2019s real estate practice. Those deductibles have returned to 5 percent or less.<\/p>\n\n\n\n

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CPE Capital Markets Newsletter<\/h2>\n\n\n\n

Executive Editor Therese Fitzgerald delivers the capital markets intel that moves the needle.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

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