For about eight years, rising premiums quietly did some of the work of agency growth. Commission is a percentage of premium, so when rates went up, revenue per account went up with them, even if the account itself didn’t change.
That tailwind has turned. The CIAB Q2 2026 survey reported an average premium decrease of 2.0% across all account sizes, after Q1 delivered the first overall decline since Q3 2017. Ten lines saw premiums shrink in Q2: business interruption, commercial property, construction risks, cyber, D&O, employment practices, flood, marine, terrorism, and workers compensation.
Clients are happy about that. Your P&L may be less happy.
The market isn’t soft everywhere
Before anyone promises a client across-the-board savings, look at the split. Commercial property led the decline at -6.3%, its largest drop since 2010. Meanwhile, according to Insurance Journal’s coverage of the same survey, umbrella rose 5.3%, its 35th consecutive quarterly increase, and commercial auto rose 4.5%.
CIAB respondents were explicit that these two trends are connected. Carriers are using property and workers comp decreases to offset the increases they still need on umbrella and auto. That matters for how you present a renewal. A client with a large fleet may see a total premium that barely moves, even while a property-only client sees real relief.
The arithmetic on a single account
Take a hypothetical property account at $100,000 in premium with 15% commission. That’s $15,000 in revenue. Apply the Q2 average property decrease of 6.3%, and premium drops to $93,700. Commission drops to about $14,055. That’s roughly $945 less revenue on the same account.
Now look at the other side of the ledger. To deliver that decrease, and to prove to the client it was the best available, your team likely:
- Updated the statement of values and COPE data
- Requested current loss runs
- Completed applications and supplementals for several markets
- Built a quote comparison
- Prepared a proposal explaining why property went down while umbrella went up
In a hard market, much of that work was skipped on accounts where the incumbent was the only realistic option. In a soft market, it’s what clients expect. Revenue per account goes down while hours per account go up.
Relief is likely to continue into early 2027
This isn’t a one-quarter blip. CIAB reported that 75% of respondents saw increased property capacity. Upstream, S&P’s September outlook projects that property catastrophe reinsurance pricing will keep softening into the January 2027 renewals. Cheaper reinsurance gives primary carriers room to keep competing on price. Plan for the soft-market workload to last well past this renewal season, not just through it.
Four ways to protect margin in a soft market
1. Turn the savings conversation into a coverage conversation
Property savings can fund coverage the client has been underbuying: higher umbrella limits given where liability pricing and verdicts are heading, updated property valuations, or lower deductibles. Market commentary from IMA notes that some of the new property capacity is showing up as lower wind and hail deductibles. The client still sees a better program, and you keep more of the premium base.
2. Consider multi-year rate agreements where they’re offered
IMA also reports multi-year property rate agreements becoming common. Locking in favorable terms reduces remarketing work in the out-years. Weigh it against the chance of further decreases. For a client who values stability, it’s often the right call.
3. Remarket by priority, not by default
Rank accounts by property concentration, size, and client expectation. Shop the top of the list thoroughly. For accounts you renew as-is, document a benchmark so the client can see you checked.
4. Lower your cost to serve
If revenue per policy is falling, the cost of servicing each policy has to fall with it, or margin disappears. The biggest lever is moving process work off licensed staff: submissions, applications, quote spreadsheets, policy checking, endorsements, and certificates. That’s what our back-office operations and dedicated broker support team services are built for, so your producers can spend their time writing the new business that replaces rate-driven growth.
Frequently asked questions
Is the commercial insurance market soft in 2026?
Overall, yes. CIAB reported average premium decreases across all account sizes in both Q1 (-1.2%) and Q2 (-2.0%) 2026. But it’s a split market: property, workers comp, cyber, and D&O are declining, while umbrella and commercial auto are still rising.
Why are umbrella and commercial auto still increasing?
Loss severity on liability claims continues to rise, and carriers are still pushing for rate on those lines. CIAB respondents noted carriers are using property and workers comp decreases to offset what they need on umbrella and auto.
How does a soft market affect agency revenue?
Because commission is a percentage of premium, lower premiums reduce revenue on the same book. At the same time, remarketing increases the work required per account. Agencies protect margin by reallocating process work, prioritizing which accounts to shop, and growing new business.
Rebuild your margin before the renewal wave
If soft-market remarketing is eating your team’s week, let’s look at which tasks can move off your licensed staff. Book a 30-minute call.