Rates in the specialty insurance market declined during 2025 and at Jan. 1, 2026, renewals, reaching levels last seen in 2021.
At Jan. 1 renewals, 75% of the 42 material classes showed rate decreases, compared with 30% of classes in 2024, according to a report Wednesday from Willis Towers Watson.
“Based on the Specialty Insurance Marketplace Survey insurance rate index, expected performance … in 2025 has unwound the rate strengthening gains of the last few years back to levels last seen in 2021,” the report said.
The survey is built on data contributed by clients of WTW’s Insurance Consulting and Technology business. WTW publishes SIMS twice yearly, with the next update to be based on first-half 2026 results and the July renewal.
Specialty markets are declining after a multiyear spike in rates. Rates increased approximately 45% cumulatively between 2017 and the market peak in 2023, but around half of that increase eroded over the past two years, the report said.
The most pronounced rate decreases have been in property and energy, followed by marine, financial institutions and professional liability, WTW said.
General liability and medical malpractice markets are moving counter-cyclically to the overall insurance markets. “Substantial concerns relate to social inflation, nuclear jury verdicts and the expansion of litigation funding in this market,” WTW said.
