Artificial intelligence is reshaping every part of the insurance ecosystem heading into 2026, driving faster underwriting and claims processing while simultaneously triggering new exclusions, regulatory scrutiny and the rise of specialized E&S solutions.
Amwins’ 2026 State of the Market report outlines how carriers and intermediaries are integrating AI into day-to-day workflows while assessing new exposures tied to algorithmic errors, data misuse and autonomous system failures. The report notes that many insurers have begun introducing exclusionary language for AI-related risks, and filings from several carriers and service providers are expected to take effect in early 2026.
Scott Purviance, chief executive officer of Amwins, said the market “continues to rebalance,” with different industry segments experiencing varied rate conditions.
The report shows that property remains one of the most competitive areas entering 2026. Rate reductions in 2025 often ranged from high single digits to more than 25%, influenced by increased global capacity, larger line sizes and oversubscription within layered programs. Despite wildfire losses and a severe convective storm season that produced an estimated $42 billion in insured losses, overall 2025 property results were viewed as manageable and contributed to an industry combined ratio of 89.1% in Q3.
Casualty trends moved at a slower pace. Most renewals were flat or posted single-digit adjustments, although auto-heavy risks, public entity accounts and transportation exposures faced more scrutiny. Social inflation and litigation funding continued to influence severity levels.
Professional lines presented mixed results. D&O renewals often settled at flat pricing, with signs of leveling after a long period of decreases. EPL and cyber-adjacent exposures saw closer underwriting review due to regulatory activity, employment practices trends and disclosure requirements.
Economic conditions entering 2026 - such as inflation near 3%, high interest rates and slower payroll growth - add to the context in which carriers and insureds evaluate exposure, capital flows and policy terms.
