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Written by: Cottingham & Butler Food & Agribusiness Group A Moment to Reflect Before We Look Ahead As 2025 drew to a close, many of us pause to take stock - of what worked, what changed, and what lies ahead. For risk managers and insurance buyers, this reflection is more than tradition, its strategy. The property insurance market has shifted dramatically over the past two years and understanding where it’s headed in 2026 is critical for setting goals, budgets, and expectations.  With softening trends accelerating, admitted and non-admitted markets colliding, and coverage terms evolving, now is the time to ask:  Will the E&S market plateau - or continue to soften? And how should you position to capture the upside while protecting against volatility?   What’s behind the softening?   Capacity Surge:  New entrants and returning carriers have boosted competition, driving down rates and improving terms. In many placements it’s typical to see oversubscription of 50-70% on individual layers, a clear signal that markets are eager to deploy capital.   Reinsurance Relief:   After historically tough 1/1 renewals in 2023, risk adjusted property CAT rates fell in January and midyear 2025 (loss free programs down ~10–15%; higher layers down up to ~20%), with strong ILS participation and healthy retained earnings driving supply. That relief has trickled down to primary property pricing and terms.   Profitability:  While catastrophe (CAT) losses remain elevated, industry capital levels are strong. 2024 ranked as the third-costliest year for natural catastrophes, with losses approaching $140 billion. For 2025, natural-catastrophe losses are projected to decline by approximately 13–24%. Reinsurers and markets closed out 2025 with robust capital positions and higher attachment points, reinforcing overall resilience. This strength is expected to support continued market softening - barring the occurrence of an extreme peak-loss event.    Bottom line:  The E&S property market is not likely to reharden broadly in 2026 without a severe, capital eroding catastrophe. We expect continued softening/plateau characteristics: modest rate decreases, expanding capacity, and better terms.  Where are the improvements?   Deductibles:  In 2025, many insureds capitalized on favorable market conditions to secure lower deductibles. During the hard market cycle from 2017 to early 2024, deductible levels often climbed to uncomfortable thresholds, shifting more risk retention onto buyers. As competition intensified, carriers were compelled to offer reduced deductible options with minimal impact on overall pricing - reflecting the depth of current market flexibility.  Limit Correction:  Many insureds are leveraging today’s competitive market to reinvest savings into higher limits. During the hard cycle of 2017 to early 2024, buyers often reduced total limits - driven by cost pressures or limited capacity. With abundant supply and improved pricing, organizations are now restoring or expanding limits to strengthen balance sheet protection and meet lender or contractual requirements.  Terms & conditions:  As competition intensifies, markets are offering enhancements to differentiate themselves. Buyers are seeing “blanket” coverage   reinstated, removal of restrictive endorsements such as Occurrence Limit of Liability (OLLE), higher margin clauses, and increased sublimits for critical exposures. These improvements reflect carriers’ willingness to provide broader protection as part of their competitive strategy.  Admitted vs. Non-Admitted Collide   Converging economics.  As E&S softens (rate, deductibles, broader terms), some admitted carriers  still push rate for technical adequacy . The result: both channels now  compete head-to-head  on price and form in segments that have been historically dominated by the admitted marketplace.    Scale and Share.  E&S now represents  a much larger slice of commercial lines  than a decade ago; NAIC/AM Best data show a sustained shift of complex property risks to non-admitted carriers - especially in FL/CA/LA. As admitted appetite expands in select niches, the contest will be won on  form, price, capacity, and engineering cred , not just license status.     Strategies for Insureds in a Softening Cycle    1) Double down on Risk Engineering.  The best price cuts and coverage offerings are going to data rich, engineered facilities with credible valuations, CAT hardening (roof, defensible space, flood measures), and maintenance discipline. Underwriters are rewarding evidence, not anecdotes.     2) Treat valuations as a competitive weapon.  Accurate valuations (cost/sq ft) and modern cost indices unlock broader blanket limits and reduce margin clause friction.     3) Revisit Program Structure . Take advantage of larger participation from competitive carriers and cleaner tower structures. Look to explore higher limits, lower deductibles, all while achieving modest rate reductions.     4) Push Non-Admitted vs Admitted Options.  Admitted vs. E&S is no longer a foregone conclusion for some sectors of the Food/Ag industry.  In 2026, lead with whichever channel wins on economics + form + engineering support, not label. Expect side-by-side options and a structured recommendation.    5) Invest in Relationships - Domestic and Overseas.  Reinsurer appetite and London/Bermuda capacity are relationship sensitive. Consistent submissions, technical calls, and plant tours with underwriting and engineering teams generate durable concessions (limits, terms, perils) that outlast a single renewal cycle.    Closing Thoughts:    The property insurance market has shifted dramatically - and opportunities like this don’t last. For nearly six years, buyers absorbed higher deductibles, trimmed limits, and accepted restrictive terms because there was no alternative. Today, the pendulum has swung. Capacity is plentiful, coverage is broadening, and markets are competing to win your business.    The question isn’t “Will the market stay soft?” - it’s “Are you positioned to take advantage before it changes again?”    Every renewal is a chance to reset your strategy:  Could you restore limits cut during the hard cycle?  Reduce deductibles without adding cost?  Secure blanket coverage and remove restrictive endorsements?  These aren’t hypothetical - they’re happening now for those who act. Waiting means leaving value on the table and risking being caught when the cycle turns.

As we look ahead to 2026, the risk landscape continues to shift in ways that demand attention from business leaders across every industry. Recent insights from Insurance Business Magazine, and other industry experts highlight several critical exposures that could impact your operations, your bottom line, and your ability to recover from unexpected events. At Cottingham & Butler, we're helping clients navigate these emerging challenges with proactive risk management strategies and tailored insurance solutions. Here's what's on our radar—and what should be on yours. Climate Risk Isn't Slowing Down Natural catastrophes are becoming more frequent, more severe, and more expensive. In 2025 alone, the U.S. experienced over 30 billion-dollar weather events—from flash flooding to extended wildfire seasons. For businesses in transportation, hospitality, and beyond, this means reconsidering traditional property coverage assumptions. Now is the time to review your property limits, explore specialized endorsements for flood and wildfire exposure, and stress-test your business continuity plans. Is your coverage keeping pace with replacement costs? Do you have a plan to keep operations running if your facilities are temporarily inaccessible? Cyber Threats Are More Sophisticated Than Ever Cyberattacks aren't just growing in number—they're growing in complexity. Cloud service outages in 2025 created ripple effects across entire supply chains, and generative AI is now being weaponized to create highly convincing phishing campaigns and system breaches. Basic cybersecurity measures are no longer enough. Your cyber insurance policy should address first-party losses, third-party liability, regulatory fines, ransomware demands, and reputational harm. If you haven't reviewed your cyber coverage recently, now's the time. Supply Chain Vulnerabilities Persist Whether it's climate-related disruptions, geopolitical instability, or vendor failures, supply chain fragility remains a top concern. Insurers are paying closer attention to contingent business interruption (CBI) exposures—and so should you. Ask yourself: Where are your critical vendors located? How quickly can you pivot to alternative suppliers? Does your insurance program provide adequate coverage for supply-chain-related losses? These aren't hypothetical questions—they're essential planning considerations. New Liability Exposures Are Emerging Liability risks are evolving, and 2026 brings heightened focus on environmental and regulatory issues. One area gaining traction is PFAS liability—so-called "forever chemicals." As states implement stricter environmental regulations, businesses in manufacturing, agriculture, hospitality, and other sectors may face lawsuits and cleanup obligations. Now is the time to reevaluate your Directors & Officers (D&O), environmental, and pollution liability coverage to ensure you're protected against these emerging exposures. What This Means for Your Business The risk environment isn't just changing—it's accelerating. Waiting until renewal time to address these exposures could leave your organization vulnerable. The businesses that will thrive in 2026 are the ones taking action today. Ready to Get Ahead of These Risks? Cottingham & Butler specializes in helping businesses across transportation, hospitality, manufacturing, and beyond build resilient risk management programs. Our team can conduct a comprehensive review of your current coverage, identify gaps, and recommend solutions tailored to your industry and operations. Let's start the conversation. Contact your Cottingham & Butler representative today to schedule a risk review.

The transportation industry faced significant headwinds in 2025, but our captive programs proved their worth when it mattered most. Through disciplined risk management and the strength of collective partnership, we didn't just weather the storm - we thrived. As we close out the year, the results speak for themselves. Early Planning, Better Outcomes Timing matters in insurance planning. This year, members across all 8 Cottingham & Butler trucking captives received their renewal terms an average of 46 days before their renewal date. This early delivery gave our members the runway they needed to make informed decisions and plan confidently for the year ahead. Rate Relief Where It Counts While the broader market faced obstacles, our captive members saw meaningful rate improvements. 34% of trucking captive members received Auto Liability rate decreases at renewal, and an even more impressive 60% saw their Work Comp rates go down. These reductions reflect the power of collective risk management and the strength of our membership. A Vote of Confidence Perhaps the most telling metric: we maintained 100% voluntary retention across all transportation captive program members. When renewal time came, every single member chose to stay. This isn't just a retention number - it's a testament to the value, service, and partnership our captive programs provide. Returning Value to Members The captive model operates on a simple principle - when the program performs well, members share in that success. In 2025, we returned $22.9 million in dividends to trucking captive members, dollars that went back into their businesses rather than disappearing into traditional insurance markets. Looking Ahead These results didn't happen by accident. They reflect the power of what's possible when transportation companies come together with a shared commitment to building something better than what the traditional market offers. While the traditional market continues to fluctuate, our captive members are building stability, retaining more capital, and planning with confidence. Together, we can achieve more. Contact your Cottingham & Butler captive expert to see how these captive results could positively impact your business!

WEBINAR Cross-Border Safety: Strengthening ELP Standards and CDL Integrity Wednesday, January 21st | 1-2 PM CST Regulatory changes are reshaping how carriers verify driver qualifications. This essential webinar, hosted by SMSC Senior Safety Consultant Kara Vines and guest speaker Belinda Garcia, retired training and developmental specialist with the Texas Highway Patrol - Commercial Vehicle Enforcement Training Unit, will break down the updated English language proficiency requirements for commercial motor vehicle drivers. You'll learn how roadside inspections now assess drivers' English comprehension, including road signs, official inquiries, and log entries, and walk away with actionable strategies to strengthen your hiring standards for full compliance. January 21, 2026 1:00 PM VIRTUAL Learning Objectives Understand Regulatory Requirements Explain the updated English language proficiency standards for CMV drivers under Executive Order 14286 and 49 CFR 391.11(b)(2). Identify Inspection Changes Describe how roadside inspections now assess drivers’ ability to read, speak, and understand English. Evaluate Compliance Risks Recognize potential out-of-service triggers and the impact of non-compliance on carrier operations. Implement Best Practices Apply actionable strategies to strengthen internal hiring and training standards to ensure full compliance. Prepare for Enforcement Develop a proactive plan to audit and monitor driver qualifications in alignment with FMCSA directives. Your Host Belinda Garcia Retired Texas DPS Commercial Vehicle Enforcement Training Unit Kara Vines Senior Safety Consultant, SMSC Upcoming Events WEBINAR January 21, 2026 Cross-Border Safety: Strengthening ELP Standards and CDL Integrity Regulatory changes are reshaping how carriers verify driver qualifications. This essential webinar, hosted by SMSC Senior Safety Consultant Kara Vines and guest speaker Belinda Garcia, retired training and developmental specialist with the Texas Highway Patrol - Commercial Vehicle Enforcement Training Unit, will break down the updated English language proficiency requirements for commercial motor vehicle drivers. You'll learn how roadside inspections now assess drivers' English comprehension, including road signs, official inquiries, and log entries, and walk away with actionable strategies to strengthen your hiring standards for full compliance. Register Now! Register Now! WEBINAR February 18, 2026 Building a Safer Workplace: Reducing Workplace Injuries and Workers Compensation Claims for Drivers Information Coming Soon! Register Now! Register Now! WEBINAR January 22, 2026 ACA Employer Reporting As the new year begins, join us for a timely webinar on ACA employer reporting, held right in the midst of the 2025 filing season. We’ll walk through the key requirements for Forms 1094 and 1095 and highlight common pitfalls, best practices, and practical tips to ensure accurate, complete, and compliant reporting. Register Now! Register Now! WEBINAR February 19, 2026 ERISA Fiduciary Duties Join us for an in-depth session on ERISA fiduciary duties for health and welfare plans, designed to help employers understand their obligations as plan sponsors. We’ll review key ERISA requirements, highlight common compliance pitfalls, and share practical best practices to minimize fiduciary risk. Register Now! Register Now! WEBINAR February 10, 2026 Nuclear Verdicts: How to Protect Your Organization from Catastrophic Jury Awards Nuclear verdicts show no signs of slowing down while the financial stakes for businesses continue to escalate. Join our claims management experts on February 10th for an interactive discussion breaking down what's fueling massive jury awards and sharing proven strategies to protect your operations. Learning from real-world case studies and field-tested approaches, you'll gain practical tools and actionable steps to reduce risk exposure and build a stronger defense against nuclear verdict outcomes. Register Now! Register Now! WEBINAR March 17, 2026 Navigating FMCSA Compliance Reviews Information Coming Soon! Register Now! Register Now! View All Events Connect with a C&B Representative Today!

We help clients lower their total cost of risk by challenging the status quo, solving complex business problems and delivering creative insurance solutions. Our technical expertise and proprietary programs, combined with our commitment to client service is the foundation of the value we bring to our clients every day. Article Mastering Your Resume: A Guide for College Graduates Read More On-Demand Webinar OSHA Reporting and Recordkeeping Compliance Updates Read More Article Managing a "Hard" Insurance Market Read More Case Study Leveraged best practices and good loss experience to return $80,000 year after year Read More Article HR’s Role in Mergers and Acquisitions Read More Article Coverage Basics: Cyber Insurance Read More Case Study Providing a Better Open Enrollment Solution Read More Case Study A 33% Decrease to Health Insurance Spend in 3 Years Read More Article Bond Producer vs. Surety Advisor: Beyond the Bond Read More

We are excited to extend an invitation to our upcoming Employee Benefits Seminar Tour designed specifically for individuals like you, who are at the forefront of shaping organizational culture and strategy. Cottingham & Butler hosts these exclusive events to provide a free opportunity for HR professionals to network, stay on top of emerging trends, and be a strategic leader in their organization. MULTI-DATE EVENT Better Every Day Seminar Tour May - August, 2025 Peoria, IL | Des Moines, IA | Iowa City, IA | Green Bay, WI Pewaukee, WI | Minneapolis, MN | Oak Brook, IL Pick Your Date! In today's rapidly evolving business landscape, staying ahead requires mastering three critical areas: technological innovation, healthcare cost management, and regulatory compliance. At each of our upcoming seminars we bring together industry experts to discuss these interconnected challenges head-on. You'll discover how AI is revolutionizing HR and business operations, learn proven strategies to control escalating healthcare costs (which remain most employers' top financial concern), and cut through the noise to focus on what truly matters in employment law and benefits compliance for 2025. Whether you're a seasoned professional or new to these areas, these insights will help you make informed decisions that drive your organization forward while protecting your bottom line. Join us at our exclusive seminar where industry experts will guide you through the three most critical challenges you are facing today. “The content and the information is great and I walk away with ideas to bring back to help enhance our benefits packages and compensation.” - COTTINGHAM & BUTLER SEMINAR ATTENDEE Seminar Tour Coming to a City Near You!