New and expanded roles position us to build on our specialized expertise and continued growth. At Cottingham & Butler, our growth has always come from the same place — deep expertise, genuine care for our clients, and a team that knows this business inside and out. Today, we're excited to share several leadership appointments across our Property & Casualty business that build on our strong foundation. Mark Roling Named EVP, P&C Brokerage Leader Mark Roling has stepped into a new role as EVP, P&C Brokerage Leader, overseeing both our Transportation and Risk Management practices. Mark has spent his career building our Transportation practice into one of the most respected in the industry and now brings that experience to a broader view of our P&C business — connecting the strengths of each practice and expanding the markets and programs we deliver to clients. “What has consistently set us apart is how well we know our clients, their operations, and the challenges they face. I'm excited to build on that foundation by expanding our property & casualty capabilities and helping clients transform risk management into a source of competitive strength.” — Mark Roling, EVP, P&C Brokerage Leader Taylor Orton Joins Chris Vogel to Co-Lead Transportation Taylor Orton has joined Chris Vogel to co-lead our Transportation practice — one of the largest and most specialized in the country. Chris is a well-respected leader in the space, with deep technical expertise and long-standing relationships across the industry. Taylor brings extensive experience growing specialized business, having spent the past several years building our Wisconsin operation. “Across the insurance industry, Cottingham & Butler's name has become synonymous with leadership in Transportation. I'm honored to be part of that legacy and excited to help build on it by continuing to deliver solutions that protect our clients' businesses, help them manage risk more effectively, and make financially efficient insurance and risk management decisions for the long term.” — Taylor Orton, SVP – Transportation Ryan Butler Takes on New Corporate Strategy Role Ryan Butler has been named Head of Corporate Strategy, a newly created role focused on our long-term growth. Working directly with President Mike Hessling, Ryan will focus on new markets, new verticals, and the strategic opportunities that expand how we serve our clients. Ryan previously led our Risk Management practice and has been a driving force behind some of our most important growth efforts since joining the firm in 2018. “There's so much opportunity in front of us, and it's exciting to focus on where we go next. This role is about making sure we're always looking ahead — building on our strengths and finding new ways to deliver leading solutions for our clients.” — Ryan Butler, Head of Corporate Strategy Building on a Strong Foundation As one of the few large, independent brokers in the country, we offer a full suite of capabilities — property & casualty, employee benefits, captive and alternative risk programs, claims and benefits administration, wellness and medical management, and safety and loss control — delivered with the specialized expertise and personal service that have defined us for nearly 140 years. “Everything we do starts and ends with our clients, and these appointments are about serving our clients' current and future needs,” said Mike Hessling, President of Cottingham & Butler. “We're fortunate to have experienced, proven leaders stepping into these roles, and I couldn't be more confident in our team and what's ahead for Cottingham & Butler.” Interested in joining our team? Explore careers at: www.cottinghambutler.com/applynow Learn more about how we serve our clients Visit: www.CottinghamButler.com

When ag retail hit a rough patch with carriers pulling out, coverage gaps at the worst possible time, Jamal Khali and his team at Farmers Co-op Association & Vision Ag needed more than a policy. They needed a partner. Here's what happened when Cottingham & Butler stepped in.

Hosted by VP of Compliance Bret McKitrick, "Leave of Absence Management in Trucking" broke down the layered framework employers must navigate when an employee goes on leave. From applicable law to plan documents to handbook policies, this session covered it all so you can handle every leave situation consistently and compliantly. Key Takeaways: Match the law to the situation. FMLA, ADA, PWFA, and Workers' Comp each apply differently — know what each does (and doesn't) require for benefits continuation and verify eligibility against actual plan documents rather than assumptions. Account for the variables that change the outcome. Leave type, duration, benefit type, and employee classification all affect how eligibility rules apply, so a consistent, multi-step evaluation process is key to reducing legal exposure and treating employees equitably. Keep policy and plan language aligned. Handbooks and written leave policies should mirror plan document requirements to close gaps or conflicts that create compliance risk. Click here to the view the presentation.

At Cottingham & Butler, trucking is what we do. As brokers face increasing scrutiny around carrier selection, insurance quality, safety performance, and operational readiness have become more important than ever. We work with owner-operators and small fleets every day, helping them strengthen the areas that matter most to brokers, shippers, and freight opportunities. Why Brokers Use Us as a Resource Transportation Expertise Our team understands the operational, regulatory, and insurance challenges facing small carriers. From FMCSA requirements and cargo exposures to contractual insurance obligations, we help identify issues before they become obstacles to moving freight. Built for Small Carriers Our dedicated inside sales team was built specifically for 1–10 unit operations. We understand the realities of owner-operators, new ventures, and growing fleets, and we know how to get them properly covered quickly, without friction. Insurance Is More Than a Certificate A certificate confirms coverage exists. It does not tell you whether the carrier’s insurance program appropriately reflects its operations. We help carriers evaluate cargo limits, liability exposures, contractual requirements, and coverage gaps before they become problems. Speed and Responsiveness We know freight doesn’t wait on timelines. Expect fast certificate turnaround and a team that’s reachable when you need answers — not when it’s convenient for us. Why Carrier Quality Matters More Than Ever Carrier qualification has always mattered, but recent developments have increased attention on how transportation providers are selected and monitored. Safety performance, operational discipline, and insurance quality all contribute to a carrier’s ability to secure and maintain freight opportunities. On May 14, 2026, the U.S. Supreme Court ruled unanimously (9-0) in Montgomery v. Caribe Transport II, LLC that freight brokers can be sued in state court when they’re accused of hiring an unsafe carrier. While the duty of ordinary care remains unchanged, the federal procedural shield utilized by many is no longer available. Brokers, like carriers and shippers before them, are now accountable for that duty in court. What Brokers Should Consider Review not only whether coverage exists, but whether insurance limits and coverages align with the carrier’s operations. Understand who represents the motor carrier and whether their insurance advisor specializes in trucking. Evaluate safety performance, inspection history, and operational trends alongside insurance information. Encourage carriers to proactively address FMCSA profile accuracy, inspection issues, and compliance concerns. Recognize that strong insurance, safety practices, and operational discipline often work together to support carrier quality. If you want to engage about a specialized insurance program for your business or have questions about how this ruling affects your business, your Cottingham & Butler team is ready to help.

Key Wins ~$3M Program Savings Reduced total premium across all lines through a complete program restructure and elimination of unnecessary broker layers. 5 Critical Coverage Gaps Closed Identified and corrected five critical gaps, including missing BI/EE coverage, key coverage exclusions for human consumption, and underinsured equipment. Moved From Entirely E&S to Admitted Package Property, Business Auto, General Liability, and Lead Umbrella placed with a single admitted carrier for the first time, replacing a fragmented non-admitted structure. The Situation One of the country's largest beef processors was facing increased premiums, lack of options, and difficulty obtaining adequate insurance. Despite its scale, the company's insurance program had never been competitively marketed or structurally optimized. The expiring program totaled approximately $6M+ in annual premium, placed inefficiently — resulting in high costs and coverage deficiencies. Five critical coverage gaps existed: the casualty tower carried communicable disease exclusions with no human-consumption carve-back, and Business Auto was priced at nearly double the for-hire benchmark. The Cottingham & Butler Approach C&B conducted a full program audit, benchmarking analysis, claims review, and commissioned risk engineering reports ahead of marketing. Our dedicated Food/Ag expertise and strong niche presence in the meat slaughter/processing space delivered an estimated ~$3M in projected savings across all lines. Property was consolidated into a single master policy for the first time, resolving all five coverage gaps and utilizing stock throughput to leverage capacity. Through our expertise and benchmarking data, we completely restructured the auto and umbrella program for optimal cost savings. This is a testament to the depth of our expertise and our ability to leverage market data, relationships, and intel to secure the most competitive program the marketplace has to offer for our insureds.

On May 20, 2026, transportation and logistics experts from SPG Logistics, Scopelitis, and Cottingham & Butler gathered for a webinar to break down the Supreme Court's landmark ruling in the Montgomery case and what it means for freight brokers, carriers, and shippers. With over 550 industry professionals in attendance, the discussion covered the history of FAAAA preemption, what the court actually decided, and the practical implications for day-to-day brokerage operations. Here are the top three takeaways from the conversation: The Supreme Court ruling eliminates FAAAA preemption as a defense for brokers in interstate negligent hiring cases. The Montgomery decision means brokers can no longer get negligent hiring claims dismissed early through legal motions — they'll now have to defend these cases all the way through trial, significantly increasing litigation costs and settlement values. Brokers must establish and strictly follow a reasonable carrier vetting policy. At minimum, this means verifying active motor carrier authority, securing a broker-carrier contract, confirming adequate insurance, and consistently checking safety data. Critically, whatever standards you set must be followed 100% of the time — exceptions to your own rules are exactly the kind of evidence that will hurt you in court. The ruling creates both risk and opportunity across the supply chain. Smaller brokers and carriers face the greatest risk, insurance costs are expected to rise, and capacity may shrink as some carriers exit the market. At the same time, carriers with strong safety records and higher insurance limits will be in high demand are expected to thrive. Since most brokers and carriers do not carry high limits, excess coverage becomes a significant competitive differentiator, especially for carriers looking to build direct shipper relationships in an environment where liability exposure is top of mind. Click this link to see where the FAAAA preemption decisions were made by the federal district and circuit court systems. Webinar Presenters Greg Feary President & Managing Partner, Scopelitis, Garvin, Light, Hanson & Feary A national thought leader in transportation law and one of the most recognized voices in the industry. Greg serves as Vice Chair of the ATA/NAFC Risk Management & Insurance Advisory Committee, Chairman of the Lawyer's Subcommittee of the ATA Insurance Task Force, and previously served as ATA's national transportation insurance counsel. Nathaniel Saylor Partner, Scopelitis, Garvin, Light, Hanson & Feary A go-to attorney for freight brokers, forwarders, and 3PLs on contracts, regulatory compliance, and carrier selection issues. Nathaniel serves on the Transportation Intermediaries Association (TIA) Programs Committee and is a regular speaker on broker-carrier contracting. Justin Olsen Chief Risk Officer – Liability & Casualty, SPG Cargo & Logistics 35 years of transportation law experience, including more than a decade as VP of Legal & Risk at England Logistics. Justin serves on the TIA Board of Directors, has chaired TIA's In-House Legal Committee, and was directly involved in the TIA amicus brief work on Montgomery v. Caribe Transport. Scott Cornell Chief Risk Officer - Crime and Theft Specialist, SPG Cargo and Logistics A nationally recognized authority on transportation risk, cargo theft, and supply chain security. Scott chairs the Transported Asset Protection Association (TAPA), Americas Chapter, serves on the TIA Cargo Fraud Task Force, has testified before Congress on cargo theft, and was recently named one of Insurance Business' 100 Best Insurance Leaders in the USA.

Written by: Cottingham & Butler Food & Agribusiness Group Six months ago, we entered 2026 expecting a favorable property insurance environment driven by abundant capacity, healthy reinsurer balance sheets, and increasing competition among carriers. At the halfway point of the year, that thesis has largely played out exactly as anticipated. Capacity remains plentiful. Carriers continue to compete aggressively for well-performing accounts; rate reductions remain common, and buyers are finding increased flexibility around program structure, deductibles, limits, and coverage enhancements. Perhaps most notably, the collision between admitted and non-admitted markets that we discussed in our January outlook has become a reality. In many placements, buyers are evaluating competing options from both admitted & E&S channels that look increasingly similar from a pricing, capacity, and coverage standpoint. Why Has the Market Continued to Soften? The answer remains simple: there is more capacity than demand. Reinsurers entered the year with strong balance sheets, new capital continues to seek attractive insurance returns, and carriers remain under pressure to deploy capacity. While catastrophe activity has continued globally, losses have not been severe enough to materially alter the industry's overall capital position or disrupt the competitive landscape. The result has been a market that continues to favor buyers. The Question Everyone Is Asking: Are We at the Bottom? No—but we're closer than we were six months ago. While the broader market remains highly competitive, we're beginning to hear a different tone from portions of the marketplace, particularly within London. Several markets are indicating they have achieved technical rate adequacy on many accounts. In some instances, pricing has moved below what certain underwriters consider technically adequate levels. Whenever that occurs, carriers eventually begin reassessing appetite, deployment strategies, and portfolio objectives. We're also seeing isolated examples of domestic carriers reevaluating growth strategies. Some markets that entered aggressively over the last 12-24 months appear to be becoming more selective as they assess profitability and portfolio performance. These are not indications of a hard market. They are, however, the type of early signals that often emerge near the bottom of a cycle. What to Expect Through the Remainder of 2026 Despite these subtle indicators, our near-term outlook remains unchanged. There is still a significant amount of capacity looking for quality business. For organizations with strong risk profiles, credible underwriting data, and a commitment to risk improvement, we expect favorable conditions to continue throughout the remainder of 2026. The market's trajectory into 2027 will depend largely on catastrophe activity, capital availability, and carrier profitability. For now, those factors continue to support a buyer-friendly environment. Strategies for Buyers in Today's Market As a reminder, a soft market is not just an opportunity to reduce cost. It is an opportunity to improve your overall risk position. We encourage buyers to: Evaluate whether deductible levels still align with risk tolerance. Reassess property limits and values. Review restrictive endorsements that were accepted during the hard market. Explore opportunities to broaden coverage. Continue investing in valuations, engineering, and underwriting data quality. Build relationships with carriers while market conditions are favorable. The organizations that gain the most value from a soft market are often those that use it to strengthen their long-term position—not simply lower premium. Closing Thoughts The industry remains awash with capacity, and we expect competitive conditions to continue. But after almost 3 years of relentless softening, we're beginning to observe the first signs that some carriers are becoming less enthusiastic about chasing rate. Will those signals fade away? Or are they the first clues that the market is preparing for its next move? It's too early to know. What we do know is that the most sophisticated buyers aren't asking how low rates can go. They're asking what the market will look like 12 to 24 months from now. Today's market is creating opportunities that would have been difficult to imagine just a few years ago. The key isn't simply taking advantage of them—it's recognizing that market windows don't remain open forever. The organizations that emerge strongest from every cycle are rarely the ones that react first; they're the ones that prepared before everyone else saw the change coming.

Cottingham and Butler recently returned from another outstanding CFMA National Conference feeling energized, grateful, and more aligned than ever with the evolving needs of the construction industry. Emily Glanz, VP of Construction, and our partner Will Bennett of Saxe Doernberger & Vita presented once again at the national event—this time on Claims in Crisis. The session focused on claims preparedness, effective communication, and navigating the critical first hours after a loss. What stood out most was the high level of engagement, with attendees sharing real-world scenarios, thoughtful questions, and practical insights that extended well beyond the session. It served as a strong reminder that true preparation goes beyond process—it’s about clarity, coordination, and confidence when it matters most. Beyond our session, this year’s conference delivered exceptional value across its educational programming. Discussions on leadership, financial strategy, workforce challenges, and emerging technologies reflected both the complexity and opportunity within today’s construction environment. For CFOs and financial leaders, the consistent theme was clear: proactive risk management and strong operational discipline remain foundational to protecting margins and sustaining growth. Equally impactful were the opportunities to connect. We were proud to co-host a happy hour alongside our surety partners at Guignard Company, which brought together a fantastic group of clients, prospects, and industry peers. Events like these create space for meaningful conversations outside the conference room, where relationships are strengthened and new ideas take shape. Some of the most valuable moments, however, happened in between the scheduled sessions—hallway conversations, reconnecting with long-time partners, and spending time together as a team. Whether sharing perspectives on industry challenges or building camaraderie at the Dodgers vs. Diamondbacks game, these interactions are what make CFMA National such a standout event each year. Most importantly, we’re grateful for the time our clients, partners, and peers invested in connecting with us throughout the week. These conversations continue to shape how we support risk management strategies across the construction space. As we bring these insights back to our teams and clients, our focus remains the same: helping organizations strengthen preparedness, improve response, and navigate risk with greater confidence. If you’re interested in learning more, would like a copy of our presentation, or want access to the resources we shared during the session, we would welcome the opportunity to connect. Emily Glanz, AAI, CIC, CRIS VP, Risk Management Consultant 563.451.4658 eglanz@cottinghambutler.com Ben Bryant, CLCS, CRIS Risk Management Consultant 563.291.0491 bbryant@cottinghambutler.com

Matt Shefchik, Assistant Vice President, Total Rewards Consulting | Cottingham & Butler In part two of our Compensation & Total Rewards Trends series, Matt Shefchik, who leads Total Rewards Consulting at Cottingham & Butler, dives into variable pay plans and why they're gaining traction in today's low wage growth environment. From formulaic incentive structures to spot bonuses and recognition programs, Matt breaks down how organizations are using variable pay to drive performance, reward top talent, and build flexibility into their compensation strategy. Watch the video below to see what the data says and what it might mean for your organization.

Michael Foley, Transportation Sales Executive The trucking insurance market doesn’t pause between renewal cycles — and neither should you. Thirteen of the past fifteen years have produced unprofitable combined ratios, driven by relentless social inflation and a litigation environment capable of turning an ordinary accident into an outsized financial event. The carriers that consistently navigate this cycle most effectively share a common trait: they treat their insurance program as a year-round strategic function, not a once-a-year transaction. Understanding the Market You’re Operating In Is Critical The 2025 commercial auto combined ratio came in at 103.5%, an improvement from 107.2% in 2024 — but still well above the 100% break-even threshold. That improvement occurred despite reduced expense ratios and declining claims frequency, confirming a critical reality: severity, not frequency, is driving the market. Fifty-eight consecutive quarters of rate increases have not kept pace with loss cost inflation fueled by litigation trends, social inflation, rising medical expenses, and increasingly complex vehicle technology. Underwriters aren’t simply pricing your loss history — they’re pricing their exposure to a legal and economic system that continues to work against them. That reality influences every decision made on your account. Benchmarking Your Results The days of benchmarking insurance performance using cost per truck are over. That metric no longer tells the full story. Today performance is heavily influenced by where you operate — not just how you operate. Carriers must evaluate claims on a lane-by-lane basis because identical accidents can produce dramatically different outcomes depending on jurisdiction. The data is clear: claim costs vary widely by state — and often even by county. Litigation financing, medical billing practices, and plaintiff-friendly venues exert outsized influence on settlement values. In many cases, the legal environment drives claim cost more than the underlying facts of the loss. As severity trends persist, motor carriers must move beyond traditional benchmarking and adopt: Geographic risk modeling Litigation trend analysis Regionally adjusted pricing strategies Operational Discipline as a Pricing Strategy Carriers that proactively identify liability exposure by operating lane consistently outperform their peers. Understanding the legal and claims dynamics of each region — and adjusting operations accordingly — is where top-performing fleets separate themselves. These carriers don’t just react to losses; they engineer outcomes. Example: A stretch of interstate becomes a hotspot for suspected fraudulent sideswipe claims, driving elevated claim severity. Strategic Response: Deploy side-view cameras Reroute vulnerable lanes Implement jurisdiction-specific claims handling protocols Operational discipline is no longer just risk management — it is a measurable competitive advantage. Building a Year-Round Strategy vs. Managing a Renewal Too many carriers still approach insurance as a renewal-driven process — engage 90 days out, market the account, negotiate pricing, and move on. That model is no longer sufficient. The most successful fleets treat insurance as a continuous strategy that evolves alongside their operation and the external environment. This includes: Ongoing claims analysis and trending Mid-term underwriting engagement Continuous operational adjustments based on loss data Proactive communication of improvements to carrier partners Insurance carriers reward transparency, discipline, and predictability. When you actively manage your risk story throughout the year, you shift from being a reactive account to a strategic partner. Closing: The New Standard for Winning The reality is simple: the insurance market is not going back to the way it was. Rate pressure, legal complexity, and severity trends aren’t temporary disruptions — they are structural changes. And in this environment, hoping for a softer market is not a strategy. Winning carriers are not waiting for external conditions to improve. They are: Treating data as a strategic asset Aligning operations with legal and geographic risk Communicating proactively with underwriting partners Embedding insurance into their broader business strategy In today’s market, the question isn’t whether you will pay more for insurance — it’s whether you will outperform your peers in how you manage it. Because the carriers that win aren’t just buying insurance differently. They’re operating differently.

Cottingham & Butler | Commercial Insurance Market Index After 32 straight quarters of increases, the commercial market posted its first broad decline since 2017. Property has swung competitive, casualty is firming, and commercial auto remains a market of its own. Here’s what moved, why, and how to think about it. Overall market Quarters ended Commercial property Commercial auto −1.2% 32 −5.5% +5.8% For the first time since 2017, commercial insurance rates broadly declined. The Q1 2026 market index registered a 1.2% average reduction, ending a remarkable run of 32 consecutive quarters of increases. The hard market that defined renewals for the better part of a decade has given way to more competitive conditions — though, as always, unevenly. The shift is clearest in property, which has swung from years of steep increases into a genuinely competitive market. Workers’ compensation, management liability, and cyber remain buyer-friendly. Casualty lines — general liability and umbrella — are still firming, and commercial auto continues on the separate, upward track it has held for years. Rates by coverage The headline reduction masks real divergence between coverages. Property led the decreases as insurers returned to competition; workers’ compensation and cyber extended declines that have run for over a year. General liability and umbrella continued to rise on litigation severity, and commercial auto posted the largest increase of any line — its 59th consecutive quarterly increase. The market is broadly softer, but far from uniform. Coverage Q1 2026 avg. change Commercial Property −5.5% Workers’ Compensation −3.7% Cyber −3.5% Directors & Officers / EPLI −2.1% General Liability +2.6% Umbrella +4.8% Commercial Auto +5.8% Source: Council of Insurance Agents & Brokers Commercial Market Index, Q1 2026. Survey averages; individual accounts vary widely by exposure and loss history. C&B Perspective Survey averages describe the overall market, not any individual account. In practice, we see a much wider spread than the averages suggest. Accounts with clean loss history and well-documented exposures are landing at the favorable end of every range, while distressed risks continue to face firm terms — even in lines that are otherwise softening. The average is only the starting point; an account’s own loss history and exposure quality determine whether it beats the market or trails it. How rates vary by program size Insurance programs vary widely in size and complexity — from a single-location operation with a handful of coverages to a multi-site enterprise with layered programs across many lines — and the softening did not reach all of them at the same pace. For most of the hard market, increases hit medium and large accounts harder than small ones. This quarter, that pattern reversed. Program size Q1 2026 change Read Small +1.1% Still rising, but slower Medium −1.9% Turned negative Large −2.7% Deepest decrease Source: CIAB Commercial Market Index, Q1 2026. Size reflects the commissions and fees a program generates — a proxy for how large and complex it is. The largest, most complex programs posted the deepest decreases (−2.7%). These accounts attract the most insurer competition, and the organizations behind them tend to bring the data and leverage to capitalize on it. Mid-sized programs, flat the prior quarter, moved into decreases this quarter (−1.9%), a sign the relief is broadening beyond the biggest buyers. The smallest programs still saw increases (+1.1%), though more modest than before — smaller, more standardized programs are consistently the last to reflect a market shift. The pattern points in one direction: softening began at the top and is steadily moving down-market. Property: a competitive market returns Property is where the turn is most pronounced. After significant increases through 2022 and 2023, the line tempered in 2024 and softened through 2025 — and by Q1 2026, insurers had returned to active competition. The driver is profitability: a stretch of poor loss years gave way to improving results, and insurers now have appetite they’re willing to deploy. It is, however, a tale of two markets. Risks that were hit hardest during the hard market — particularly those placed in the London and excess & surplus (E&S) markets — are now seeing significant, often double-digit, reductions. Standard-market risks are seeing a more measured range, from flat renewals to reductions in the 5–10% area. Every risk is treated on its own merits, and the gap between the best and worst outcomes remains wide. C&B Perspective The improvement traces in part to easing catastrophe losses — 2025’s roughly $101B in insured catastrophe losses came in well below 2024’s $180B-plus. But the underlying volatility hasn’t gone away. Severe convective storm activity (wind and hail) continues to drive losses, particularly across the Midwest, and insurers have responded with percentage-based wind/hail deductibles (commonly 1–3% of values) that shift more of that risk to the insured. Softer rate is real, but the structural exposure deserves the same scrutiny it did a year ago. Casualty: general liability and umbrella keep firming While property eased, the casualty lines moved the other way. General liability continued to firm, with rate increases in the low-to-mid single digits, as insurers cited rising loss severity — social inflation, and growing exposures such as PFAS and difficult product and food-related liability. The pressure is real, but the rate trend has been improving over the past year. Umbrella tells a sharper version of the same story. Pricing began firming dramatically in 2019 and has continued through 2025, driven largely by commercial auto severity. Headline increases have started to plateau, but years of compounding remain on the books, and capacity at the higher layers ($10M and $25M) stays limited. Fleet-exposed accounts continue to face steeper increases than the broader market. Why umbrella severity keeps climbing Average commercial auto verdict: roughly $3.6M in 2010 to over $30M in recent years. Average cost to settle a commercial auto fatality: about $1.9M in the mid-2000s to over $4M today, with a median verdict above $5M. Nuclear verdicts: $10M–$100M awards leveling off after a post-COVID spike, while “mega” verdicts above $100M continue to rise. Sources: industry verdict studies including Travelers’ Top-100 Verdicts of 2024 and CaseMetrix data; figures are illustrative of the severity trend. Why commercial auto is still rising Commercial auto is the exception that has now lasted 59 consecutive quarters. Its pricing tracks its own claims experience rather than the broader market cycle, which is why it can keep rising even as property and other lines fall. The line has been unprofitable for insurers in nearly every year for over a decade, and the rate increases — running in the high single digits and higher for fleet-heavy accounts — reflect a line still trying to reach breakeven. What’s driving commercial auto claims Liability severity & nuclear verdicts. Rising lawsuit severity and litigation financing keep pushing verdicts higher, with the largest awards reshaping insurers’ loss expectations across entire books. Repair & replacement cost. Vehicle technology — sensors, cameras, driver-assist systems — makes every collision more expensive to repair, with parts and labor inflation compounding the effect. Distracted driving. Distraction and congested roads keep claim frequency elevated, adding to the severity problems and keeping overall loss costs on a steady climb. Driver shortage. A thin driver pool puts less-experienced operators behind the wheel, raising the stakes on hiring and retention and feeding the frequency problem. Loss-trend detail per AM Best March 2026 commercial auto reporting. The profitability gap explains why relief isn’t coming soon. Even after years of double-digit increases, the line’s 2025 combined ratio sat around 109%, meaning insurers still paid out more than they took in. The brief, COVID-related improvement of 2020–21 proved short-lived, and the unprofitable trajectory has continued since. Conditions are improving slightly, but auto remains the hardest line to place well. The broader point isn’t that auto is uniquely difficult — it’s that not every coverage responds to the same forces. Some are priced on the broad market cycle; others, like auto, on their own claims history. Knowing which is which is the foundation of a sound renewal strategy in any market. For Transportation Clients Our transportation quarterly update goes deeper on what moves your cost — verdict exposure, telematics and safety data, and captive and deductible structures. The buyer-friendly lines: comp, management liability, cyber Workers’ compensation (−3.7%). Loss severity has improved on better safety and claims management, keeping the line competitive. The watch item is medical inflation — the medical portion of comp claims now exceeds 60% of costs and continued medical cost growth will eventually pressure rates. Directors & Officers / EPLI (−2.1%). Competitive conditions and broad terms persist, even as claims frequency and severity continue — driven by wage-and-hour litigation and an elevated overall litigation environment. Cyber (−3.5%). Pricing has stabilized as insureds improved IT protocols in response to ransomware. That stability may prove short-lived: underlying claims trends remain concerning, and the line could firm again if loss activity reaccelerates. What it means for your industry Your renewal will look very different from the headline, depending on which coverages make up most of your program. The reads below show what this quarter’s movement tends to mean industry by industry, so you know where the opportunity is and where to put your attention. Whatever your industry, the same logic applies: identify the coverages that carry the most premium, and track which way each one moved. Trucking. The biggest cost is still rising. Commercial auto anchors the program and climbed again, so the broad softening reaches these businesses the least. Easing property and workers’ compensation help around the edges, but the fleet drives the total — and managing that line through safety, data, and structure matters more than any market shift. Distribution. A split picture. Easing property and warehouse coverage pull one way; the same rising auto costs that affect trucking pull the other. Where a distributor lands depends on how much of the program sits in the fleet versus the facilities — and the two halves are worth looking at separately. Manufacturing. Among the better-positioned. Property is typically the largest cost and fell the most, and insurer appetite is broad. Product liability and any owned vehicles work against that, but the weight of the program sits on the side that softened — making this a year where well-documented property exposures can benefit most. Construction. Mixed, and structure-dependent. Property eased while excess and umbrella rose and contractor coverage held roughly flat; contractors with large fleets also carry the auto increase. Because property and excess layers tend to set the tone, how the program is built matters more than any single coverage’s direction. Food & agriculture. Genuinely mixed. Property and equipment costs are easing, but product and food-liability exposure is exactly where general liability insurers are seeking rate — and any fleet adds auto pressure. The net depends on the balance of facilities, product, and vehicles in the program. Retail. Generally favorable. Property and cyber — the coverages that matter most to multi-location and online retailers — both fell. General liability is the offset to watch, particularly for high-traffic formats where customer-injury exposure is greatest. Professional services. A softer picture than in recent years, with directors & officers, employment-practices, and cyber coverage all easing. Firms with little property or vehicle exposure see the cleanest version of this quarter’s relief. Healthcare. Cross-currents. Easing workers’ compensation and cyber pull against firmer liability and rising medical severity. The outcome turns on the balance between staffing exposure on one side and clinical and professional liability on the other. Higher education. Broadly favorable on paper, as property, cyber, and management-liability coverage all eased — covering much of a typical campus risk profile. The exceptions to watch are owned vehicle fleets, abuse and athletics exposure, and anything tied to enrollment, where the broad trend may not hold. For Risk Management Clients Our risk management quarterly update goes deeper on the market conditions, program structure, and trends shaping your renewal. Get the full outlook to see what this market means for your program. Managing total cost of risk A softer market naturally turns attention to rate — but rate is only part of what determines the long-term cost of a program. The more durable opportunity is what a market like this lets a business address in the underlying risk, because the same factors that shape pricing now are what hold it steady when the market turns back. It is also where an experienced advisor adds the most value: the difference between marketing a renewal and managing risk year-round shows up most clearly in conditions like these. A few principles shape how we approach a program heading into renewal: Data quality drives the outcome. Insurers price against your claims history, exposure detail, and current values — so how that information is assembled and presented often matters as much as the underlying risk. Clean, complete, well-documented data is the single biggest factor in how a program is received, and in a competitive market it’s often what earns the better terms. The most effective programs are built and documented well before they reach the market. Understand what’s driving each coverage. Some costs move with the broad insurance market; others, like commercial auto, move on a business’s own claims and the litigation environment around them. Knowing which is which sets realistic expectations — where the market itself will deliver relief, and where progress has to come from prevention and risk management. It’s the difference between hoping for a better renewal and knowing where one is actually possible. Premium is one number; total cost of risk is the real one. Deductibles, how much risk a business keeps versus transfers, the cost of the claims that do occur, and the overall structure of a program all shape what coverage actually costs over time. A lower premium built on the wrong structure can cost more in the long run — which is why the structure, not the quote, is the right place to start. Loss prevention compounds over time. The safety, claims-management, and loss-control work done between renewals is what bends the long-term cost curve. A softer market makes a strong track record more visible and more valuable — but it’s consistent investment over time, not favorable timing, that lowers the cost of risk. Approach the market deliberately. A more competitive environment is the time to confirm a program reflects current conditions, surface potential issues early, and set renewal strategy well ahead of the deadline — rather than defaulting to last year’s program and terms. The earlier that work begins, the more leverage a business has when terms are set. The organizations that treat renewal as a point-in-time price check tend to capture the least; those that manage total cost of risk year-round are positioned to benefit whichever way the market moves. Signals for next quarter Property capacity and discipline. The decreases came with a clear jump in insurer appetite. Whether insurers hold their pricing discipline as they compete — or over-correct to win business — will determine how long this relief lasts and how far it goes. Auto claims, not the rate. Auto pricing follows auto losses, so the rate is a lagging signal. Verdict sizes and repair-cost inflation are the real indicators — they’ll show whether the line is moving toward relief long before the rate itself does. Medical inflation in workers’ comp. Medical costs now make up more than 60% of comp claims, so sustained medical inflation is the most likely force to push that line’s rates back upward — the clearest thing to watch for a turn in an otherwise easing coverage. Whether the softening spreads. Several coverages flattened this quarter rather than fell. If they tip negative over the next quarter or two, the competitive market broadens — and more of a typical program lands in buyer-friendly territory. Know where the market stands. Know where you stand. A turning market rewards preparation. Whether you’re heading into renewal, evaluating coverage, or looking for ways to manage rising costs in the lines that are still firming, our team brings the market knowledge and insurer relationships to help you make the right call — and the year-round risk and claims expertise that turns a market shift into a lasting advantage. Analysis based on Cottingham & Butler’s review of Q1 2026 commercial property and casualty market conditions, including the Council of Insurance Agents & Brokers Commercial Market Index, AM Best market reporting, and industry catastrophe and verdict data. Rate ranges reflect Cottingham & Butler’s market observations; survey figures reflect CIAB averages across all account sizes. Industry and segment readings are directional; individual results vary by exposure, geography, and loss history.

Hosted by SMSC Safety Consultant Barry Wertz, "Crash Data Analysis: What Your Fleet's History is Telling You" explored Excel's essential features that turn raw data into actionable insights. Attendees discovered how charts, sparklines, and conditional formatting can help communicate trends instantly and built skills that make data analysis faster, more accurate, and more efficient. If you were unable to attend or want to revisit this session, view the webinar recording now! Key Takeaways: Good analysis starts with the right data. Without a reliable foundation, even the most sophisticated tools can produce misleading results. Clean, well-structured data allows Excel to work more effectively and ensures your outputs are accurate and ready to act on. The patterns uncovered in your data should inform decisions and drive meaningful change, not simply populate a report. Clear, well-designed visuals make it easier for stakeholders to interpret findings quickly and respond with confidence. Click here to the view the presentation.