Insureds in the U.S. property and casualty insurance space are “eager to take advantage” of the most favorable market they have experienced in several years, according to Artex’s Alternative View – Spring 2026 report.
In its latest report, Artex noted that with ample market capacity and insurers eager to expand their property portfolios, many insureds have taken advantage of favorable conditions to renegotiate previously restrictive terms and conditions and, in some cases, obtain lower deductibles.
The company’s report continued, “From a NatCat insured loss perspective, 2025 came like a lion and went like a lamb. For the first time since 2015, no hurricanes made landfall in the United States. This helped offset insured losses from the California wildfires in January 2025.”
Artex explains that after years of above-average rate increases, disaster-driven strata and shared property schemes are finally experiencing rate relief.
Artex said in its spring 2026 report that accurate property valuation remains a challenge in the property insurance market and is particularly important for data centers, one of the fastest-growing segments of the commercial real estate sector.
“Across the United States, hyperscalers and colocation providers are responding to the AI boom by building these large structures that store and transmit digital information.
“One consulting firm estimates that global enterprises will invest nearly $7 trillion in data center infrastructure by 2030, 40% of which will be deployed in the United States.
“These high-tech facilities typically have a total property insurance value of $1 billion to $5 billion, depending on the equipment they house such as servers and cooling systems. And because of their size, many of these facilities are located in remote areas that have historically experienced South China Sea disasters and/or wildfires.”
Learn more about the challenges and opportunities associated with hyperscale data center projects in a new S&P report that highlights the industry as a growing but increasingly selective area of interest to reinsurers.
Meanwhile, Artex’s Alternative View – Spring 2026 Report also looks at the U.S. casualty market, arguing that rate hikes alone are unlikely to return the industry to health.
“External trends, particularly litigation funding and social inflation, continue to hurt most casualty insurance lines. Social inflation is more difficult to control than economic inflation and has a greater impact on the severity of casualty claims than rising costs,” Artex said.
The company continued: “The result has been an increase in the size of claims, particularly nuclear verdicts, with jury awards exceeding $10 million. The risk of future nuclear verdicts creates challenges for carriers in pricing casualty risk and adjusting limits and pricing.
“Umbrella/excess policies provide businesses with additional protection against business-harming judgments that exceed the primary limits, but are subject to significant pressure from nuclear judgments.
“Carriers are responding to nuclear rulings with higher attachment points, particularly for general liability and commercial vehicles, and more exclusions. No casualty lines have suffered as a result of nuclear rulings to the extent that commercial vehicles have.
“The American Transportation Research Institute (ATRI) reported in 2025 that nuclear verdicts have increased in frequency and severity. By 2022, the median nuclear verdict reached $36 million. This is a 50% increase from the median nuclear verdict in 2013.”
