As we move into 2026, experts are predicting a more stable year for excess & surplus lines compared to recent history.
Premium growth is starting to moderate after several years of double-digit increases, and the industry will begin to focus on refining its processes.
"These trends signal a shift away from growth-led market dynamics toward disciplined underwriting, distribution innovation and margin protection," said Robert Sherman, U.S. head of audit and advisory at Pro Global, in an email interview.
Flatter pricing in many segments of the market will drive a need to ensure that capacity is deployed with caution, and there's less wiggle room when it comes to assessing and pricing risk, Sherman said. Audits and governance structures will likely need to play a larger role in the year ahead.
"Rather than being treated as mere back-end reconciliation exercises, audits are increasingly providing forward-looking insights," he said. "This proactive approach is essential in examining underwriting, operational and claim performance, as well as larger scope audits. A disciplined methodology is crucial for ensuring combined ratio performance. In a market still influenced by social inflation and catastrophe volatility, such visibility supports more accurate pricing decisions and informed capacity deployment."
The slideshow above highlights key E&S trends to watch in 2026.
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