The commercial property and casualty market shifted in early 2026. Average premiums across all account sizes declined 1.2% in the first quarter, marking the first decrease since Q3 2017 and ending a 33-quarter stretch of increases. 

Still, this is not a uniform soft market. Property has become more competitive, while casualty lines such as commercial auto continue to face pressure from claim severity, litigation and rising costs. For independent agents, the message is clear: one market description does not fit every client.

Clients Are Looking for Options 

Consumers are paying closer attention to price and value. The 2025 J.D. Power U.S. Insurance Shopping Study found that 57% of auto insurance customers had actively shopped for a new policy in the past year, up from 49%. That was the highest shopping rate recorded in the study’s 19-year history. 

This makes every renewal an opportunity to demonstrate the value of independent advice. Instead of focusing only on premium, agents can help clients understand how geography, loss history, coverage limits and changing exposures affect their insurance options. 

These conversations are especially important in casualty lines. Commercial auto premiums increased an average of 5.8% in the first quarter of 2026, marking the line’s 59th consecutive quarter of increases. Claim frequency and severity, litigation, social inflation, and higher repair, replacement and medical costs continue to contribute to the pressure. 

Technology Is Changing the Market 

Advanced analytics and artificial intelligence are becoming more integrated into insurance underwriting and pricing. 

According to WTW’s 2026 Advanced Analytics and AI Survey, property and casualty insurers using more sophisticated analytics achieved combined ratios six percentage points lower than slower adopters between 2022 and 2024. 

 As these capabilities expand, the quality of an account’s data and risk-management story may become even more important. Agents should understand how carriers are using technology and help clients present complete, well-documented submissions. 

Technology can support the client conversation, but it does not replace the agent’s role. Clients still need someone who can explain coverage, identify potential gaps and connect market changes to their individual risks. 

Build a Strategy That Can Adapt 

Agencies should apply the same proactive thinking to their own operations. Every market shift raises two important questions: How do we protect the business we have, and how do we continue to grow?

Strong agencies don’t wait for the market to answer those questions for them. They regularly review retention strategies, client communications, technology, carrier relationships and long-term business direction. 

The Trusted Choice Evolving Market Toolkit provides practical strategies to help agencies: 

• Protect and retain their book of business. 
• Turn renewals and service calls into opportunities to strengthen client relationships. 
• Explain the reasons behind market and coverage changes. 
• Identify technology and process improvements. 
• Prepare for the next stage of the insurance cycle. 

Turn Market Change Into Opportunity 

Independent agents are well positioned to help clients navigate changing conditions. Clients need more than a quote. They need clear explanations, thoughtful coverage guidance and a trusted advisor who can help them make informed decisions. 

Don’t wait for the next market shift. Meet with your team, identify one client conversation to strengthen, choose one technology or process improvement to explore, and set a date to review your agency’s strategy.

Download the Trusted Choice Evolving Market Toolkit 
You will need your BIG “I” username and password to access and download the materials.

Short preview of the toolkit: Here

Full toolkit now available: Here

For additional information, contact Jeanie Giesler, Resource Center Advisor, at jeanie@ohioinsuranceagents.com or 614-552-3054. 

About the Author

Jeannine Giesler, CISR, CPIA, and past President of the OIA Board of Directors, Foundation for the Advancement of Insurance Professionals, currently serves as Resource Center Advisor for the OIA. The purpose of the Resource Center is to contribute to building a comprehensive library of resource materials for our members. We pride ourselves on being the one-stop shop for all OIA members and work to solve every problem or situation you may come across.

Legal Disclaimer: This material is intended to provide you with general background and insight. The material does not constitute, and should not be regarded as, legal advice regarding any particular facts, circumstances, or issues. This material is not intended to serve as a substitute for legal counsel, and we advise you to contact legal counsel for specific analysis, drafting and advice. 

More Information: Seek your trusted advisors Attorney, Banker, and CPA that your legal and financial interests are adequately protected. The information provided in this publication is not intended to be a substitute for legal advice. You should consult your legal counsel and make certain that you are in compliance with state law. 

Cited Resources  

 The Council of Insurance Agents & Brokers (CIAB).
Q1 2026 P&C Market Survey. May 13, 2026. Nicole Vasile.
Supports the Q1 2026 premium decline, commercial property market conditions and continued commercial auto premium pressure. 

 MarshBerry.
Commercial P&C Market Turns Soft – But Pricing Divergence Continues. 2026.
Supports the finding that the Q1 2026 decrease ended a 33-quarter run of rising commercial P&C premiums. 

 J.D. Power.
2025 U.S. Insurance Shopping Study. April 29, 2025.
Supports the finding that 57% of auto insurance customers had actively shopped for a new policy in the past year, up from 49%, representing the highest shopping rate in the study’s 19-year history. 

 WTW.
Insurers Using Advanced Analytics and AI Report Strong Returns on Investment and Premium Growth. March 19, 2026.
Supports findings from WTW’s 2026 Advanced Analytics and AI Survey, including the six-percentage-point combined-ratio difference between sophisticated analytics users and slower adopters.