What the 2026 insurance cycle shift means for manufacturing leaders

2026 marks a real turning point. After years of hard market conditions, capacity is back, competition is high, and insurers are offering meaningful rate relief. For manufacturers, this is a rare chance to secure sharper pricing and stronger coverage, especially for those who approach renewals with intent.

5 Key Insights for Manufacturers

1. Property: major softening and real rate reductions

Reinsurance renewals delivered double digit decreases, with capital (including ILS (Insurance Linked Securities)) flooding back into the market. Insurers are deploying aggressively, especially for manufacturers with strong risk controls.

Expect:

• Broader BI/CBI extensions
• Better deductibles
• Improved reinstatements
• Genuine premium relief for large facilities and high TIV (Total Insurable Value portfolios)

Underwriters remain selective around bushfire, flood and cyclone risk, but those who demonstrate strong risk discipline are winning the best terms.

2. Casualty: stable overall, but excess layers still tight

Primary liability is largely flat, but excess layers remain constrained – especially for manufacturers with US exposure or higher hazard operations.
Social inflation continues to drive pressure, with insurers focusing heavily on:

• Documented safety systems.
• Incident reporting.
• Loss control evidence.

Expect flat to +12.5% movements depending on your profile.

3. Valuations & Inflation: a critical watchpoint

Rate reductions don’t remove the risk of underinsurance. Construction costs, materials pricing and asset values remain elevated.
Annual valuations are no longer optional; they’re essential to avoid coinsurance penalties or gaps at claim time.

4. Technology, Automation & AI: efficiency brings new risks

Manufacturers are moving fast on automation and AI-driven systems. With that comes increased connectivity and new exposures: cyber, operational disruption, product liability and downstream equipment failure.

Cyber pricing remains competitive, but underwriting scrutiny is rising quickly.
Early engagement and strong controls are key to locking in broad cover before the next systemic loss event.

5. Strategy 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
• Leverage market relationships

Even in a soft cycle, strategy wins.

Bottom Line

2026 offers manufacturers a genuine opportunity to secure better pricing, broader cover and stronger long-term positioning.
But capturing that value requires accuracy, preparation and proactive engagement.
Want to leverage this window in the cycle?
Let’s review your program, benchmark your position and build a strategy that gets you the best possible outcome.