After several years in which manufacturers faced rising premiums and tighter underwriting conditions, 2026 is shaping up differently. Insurance capacity has returned across key classes, competition among insurers has intensified, and rate relief is emerging in multiple segments, according to analysis from Howden Group.
In property insurance, the change is most noticeable. Reinsurance renewals delivered double-digit decreases, with capital, including Insurance Linked Securities, returning to the market. As a result, insurers are competing more actively for well-managed manufacturing risks.
Howden Group noted that manufacturers can expect “broader BI/CBI extensions, better deductibles, improved reinstatements, and genuine premium relief for large facilities and high TIV portfolios.” However, the firm cautioned that underwriting discipline remains in place for catastrophe-exposed risks.
“Underwriters remain selective around bushfire, flood and cyclone risk, but those who demonstrate strong risk discipline are winning the best terms,” Howden Group stated.
In casualty lines, the picture is more balanced. Howden Group described primary liability pricing as largely flat, but says excess layers are still tight, particularly for manufacturers with US exposure or higher-hazard operations.
Rising court awards and larger settlements also continue to affect pricing. Insurers are paying closer attention to written safety procedures, how incidents are recorded, and clear proof that risks are being managed. Depending on the business, pricing may stay flat or rise by as much as 12.5%, according to Howden Group.
Howden Group also warned that lower rates do not remove the risk of being underinsured. Building costs, materials and overall asset values are still high. The firm says regular, up-to-date valuations are necessary to avoid shortfalls in cover or penalties if a claim is made.
At the same time, operational changes are introducing new exposures. As manufacturers adopt automation and AI-driven systems, connectivity increases, along with potential exposure to cyber incidents, operational disruption, product liability and downstream equipment failure.
“Cyber pricing remains competitive, but underwriting scrutiny is rising quickly,” Howden Group noted, adding that “early engagement and strong controls are key to locking in broad cover before the next systemic loss event.”
Despite the softer conditions, Howden Group stressed that preparation still determines the outcome.
“Softening markets don’t guarantee better results. The manufacturers achieving standout outcomes are those who start renewal planning early, provide strong data and valuations, showcase risk improvements and leverage market relationships.”
