The Baldwin Group, a U.S.-based insurance distribution and risk management company, has released its Real Estate Market Pulse Report, Q1 2026outlining pricing changes and underwriting conditions for its property and casualty insurance portfolio.
In line with trends identified within the company’s own business, the report highlights continued soft market conditions as insurers compete aggressively for business amid strong capacity levels and favorable reinsurance conditions.
The report noted that the Baldwin Group’s real estate price index fell to -7.1% in the first quarter of 2026, compared with -4.7% in the fourth quarter of 2025.
It was the fourth consecutive quarter of negative price action and the sharpest decline recorded since the index entered negative territory, the company said. This data reflects senior pricing trends observed across The Baldwin Group’s entire portfolio rather than individual account performance or interest rate changes for specific exposures.
The current environment is particularly favorable for well-documented accounts with good loss histories, Baldwin Group said. In many cases, insureds are taking advantage of lower pricing levels to strengthen plan structures by restoring coverage limits, negotiating improved deductible arrangements and securing broader policy terms that were previously unavailable during difficult market cycles.
Despite increased competition, the company stressed that underwriting scrutiny remains. Insurers continue to review policy value calculations, carefully rebuilding cost assumptions and catastrophic risks, particularly as tariff-related material cost inflation and ongoing labor shortages continue to impact rebuilding costs and extend repair times after a loss.
According to findings from The Baldwin Group, shared and strata property schemes saw the largest price declines in the market at -20.8%, while single operator placements fell by -11.25%.
The company attributes the current competitive environment to insurers’ solid investment performance, solid underwriting performance and relatively low catastrophe activity compared with the prior year. While The Baldwin Group expects soft market conditions to continue into the second quarter of 2026, it noted that the upcoming storm season and mid-year reinsurance renewals remain major factors that could influence pricing direction for the remainder of the year.
The report also noted that improving reinsurance market conditions and lower levels of natural catastrophe losses are encouraging insurers to expand their underwriting appetite and consider risks that may not have previously been covered by standard underwriting guidelines. This has led to broader terms from insurers and an increased willingness to deploy additional capacity, according to The Baldwin Group.
The Baldwin Group advises organizations that are about to undergo updates to ensure property valuations, construction schedules and loss control information remain accurate and up-to-date in order to achieve the best results under current market conditions.
In the introduction to the report, The Baldwin Group explains that the publication is intended to provide a detailed overview of advanced pricing trends across the Baldwin Group’s business on a quarterly basis since 2021, describing it as a guide to understanding insurance pricing movements and the broader factors affecting premium costs. The company also noted that the report should not be considered personalized financial advice.
Regarding methodology, Baldwin Group said the findings reflect trend data drawn from its collective business books as of April 21, 2026. The company added that all data has been normalized to remove outliers and is not intended to directly represent interest rate or risk data.
