Today, we’re thrilled to sit down with Simon Glairy, a leading expert in insurance and Insurtech, with a deep focus on risk management and AI-driven risk assessment. With years of experience navigating the ever-shifting landscape of property insurance, Simon offers invaluable insights into the trends shaping underwriting as we look toward 2026. In this conversation, we explore the lingering effects of hard-market discipline, the softening of the property insurance market, the challenges in high-risk areas, and the strategies brokers and clients can use to adapt to these changes.
How would you describe the lasting impact of hard-market underwriting discipline on the property insurance industry today?
The hard market left a strong imprint on how insurers operate, even as the market begins to soften. Underwriters are still holding firm to stricter guidelines around risk selection, pricing, and terms that were established during tougher times. This means they’re not just throwing caution to the wind despite better financial conditions. It’s about maintaining a balance—protecting their portfolios while slowly opening up to new opportunities. For instance, we’re seeing continued emphasis on detailed risk assessments and conservative capacity limits, especially in certain property classes or regions.
Can you share an example of how some firm ‘no’s’ in underwriting are starting to become ‘maybes’ as the market evolves?
Absolutely. Take properties in areas that were previously deemed too risky, like certain secondary peril zones. A few years ago, insurers wouldn’t touch these without extreme terms, if at all. Now, with better data and modeling, some carriers are reconsidering these risks as ‘maybes’—provided there are mitigations in place like higher deductibles or specific loss prevention measures. This shift is giving clients a bit more access to coverage, though often at a higher cost or with more conditions attached.
What do you see as the main factors driving the softening of the property insurance market heading into 2026?
There are a few key drivers at play here. First, the US has had a relatively quiet hurricane season recently, which has reduced catastrophic losses and boosted carrier confidence. Second, insurers have seen strong investment returns in 2025, giving them more financial wiggle room to lower rates or expand capacity. Lastly, there’s a growing appetite to re-enter risk markets as competition heats up. Carriers are looking to grow their books, and that’s translating into more favorable pricing and terms for many clients, especially in lower-risk areas.
How are high-peril zones, like coastal or wildfire-prone areas, still feeling the strain despite market improvements?
High-peril zones are a different beast. Even with a softening market, insurers remain incredibly cautious. Property owners in places like California or the Gulf Coast are still facing limited capacity, higher premiums, and stricter terms. Carriers are dipping their toes back into these markets, but they’re not diving in headfirst. This means they might offer coverage, but with significant deductibles or risk-sharing expectations. For homeowners and businesses in these areas, securing affordable coverage remains a real challenge, though conditions are slightly less dire than they were a couple of years ago.
Why do you believe tighter guidelines and larger deductibles will persist even as the market softens?
It comes down to risk management. Insurers learned hard lessons during the peak of the hard market, and they’re not about to forget them. Tighter guidelines ensure they’re not overexposed, while larger deductibles and risk-sharing arrangements shift some of the burden to clients, protecting carriers from severe losses. These measures are now baked into their long-term strategies, especially for high-exposure areas. It’s a way to balance growth with stability, and I don’t see that changing anytime soon, even with improved market conditions.
How do these stricter terms and higher deductibles affect the average homeowner or business owner seeking coverage?
For the average homeowner or business owner, it often means higher out-of-pocket costs if a claim arises. A larger deductible can be a tough pill to swallow, especially for smaller businesses or families on tight budgets. On the flip side, accepting more risk can sometimes lead to lower premiums, which might be a trade-off worth considering. It also pushes property owners to invest in prevention—like reinforcing structures or installing monitoring systems—to avoid claims altogether. It’s a shift in mindset, where clients are more active partners in managing risk.
You’ve encouraged brokers to ‘shop’ the market proactively. Can you paint a picture of what that looks like in practice?
Sure. Shopping the market means brokers shouldn’t just settle for the first renewal quote or assume the current carrier offers the best deal. It’s about actively seeking out multiple options—reaching out to different insurers, comparing rates, terms, and capacity, and really understanding the client’s specific needs. For example, a broker might find a carrier willing to offer better pricing for a property if the client agrees to a higher deductible or installs certain safety tech. It’s all about leveraging the growing competition to empower clients with choices.
What role do you think smart-home technologies can play in helping clients mitigate risks and improve their insurance options?
Smart-home tech is a game-changer for loss prevention. Things like water leak sensors in bathrooms or near appliances can catch issues before they turn into major claims. Water damage is one of the most common and costly problems for homeowners, often happening when no one’s around to notice. By installing these devices, clients can drastically reduce the likelihood of a claim, which carriers love. Many insurers are even offering discounts or incentives for using such tools, so it’s a win-win—lower risk for the carrier and potentially better rates for the client.
What’s your forecast for the property insurance market as we move further into 2026 and beyond?
I’m cautiously optimistic. I expect the softening trend to continue into 2026, with premium growth slowing and more competitive pricing, especially for standard-risk properties. However, high-peril zones will likely remain a sticking point—carriers will ease in slowly, maintaining strict terms. We’ll also see tech and data play a bigger role in underwriting, helping insurers refine their risk models and offer more tailored solutions. That said, external factors like climate patterns or economic shifts could throw a wrench in things, so vigilance is key. I think the market will reward those who adapt—whether it’s clients embracing risk mitigation or brokers staying proactive.
