As the commercial insurance market begins to soften after several years of elevated pricing, insurers and brokers are increasingly focused on underwriting discipline, client retention and value-added risk services rather than pure premium growth.
This is the dominant theme emerging in 2026, according to Tony Beal (pictured), Chief Distribution Officer at Intact Specialty Solutions, who said market participants are entering a more competitive phase that will test underwriting expertise and long-term relationship management.
“Everybody wants to write new business, but the acquisition cost to get a client is really, really difficult,” Beal told Insurance Business. “You would hate to lose it in this marketplace.”
After years of rate increases across many commercial lines, brokers and insurers are now navigating an environment where pricing pressure is easing and competition for high-quality accounts is intensifying. The growing focus on value-added services is pushing insurers to differentiate themselves beyond underwriting capacity alone.
Beal said the shift is forcing carriers to focus more heavily on retention strategies, technical underwriting and proactive communication with clients. But he stressed that the challenge is not simply maintaining market share but doing so without sacrificing underwriting standards.
To maintain retention, Intact is encouraging underwriters and distribution teams to engage brokers and clients earlier in the renewal process and focus on accounts that strengthen the insurer’s portfolio.
“A lot of people will use this marketplace to get scale,” said Beal. “That’s okay. That’s not where we’re going to land.
“We’re going to stay disciplined around our underwriting. We’re going to lean into the opportunities that fit us. We’re going to further develop the relationships that will enhance our ability to succeed long-term.”
The current cycle is also testing ties between intermediaries and their clients. Brokers are under pressure to defend relationships while simultaneously responding to aggressive pricing competition from rival firms.
Beyond pricing, many brokers and clients are also seeking broader risk-management support from carriers, particularly as concerns around severe weather, litigation costs, and operational disruption continue to rise. Insurers can support brokers by remaining transparent, communicating early in the renewal cycle and demonstrating a detailed understanding of client risk profiles, Beal said.
Intact Specialty, for its part, is increasing its focus on technology and alternative risk solutions, such as parametric products. Beal identified three strategic priorities driving the company’s approach this year: technology investments, distribution expansion, and evaluating new vertical opportunities.
"We have to keep providing solutions... and differentiate our products and ourselves in the marketplace to continue to be relevant inside organizations," he said.
Despite competitive conditions, the broader market environment remains challenging for insurers, which continue to face headwinds from geopolitical instability, severe convective storms, rising claims costs and social inflation.
“The (nuclear) verdicts are absolutely frustrating to us,” Beal said, referring to large legal judgments and third-party litigation financing. “But those are things that exist in the marketplace. We can’t lose focus because of those.
Instead, Beal said insurers need to remain disciplined and avoid making short-term decisions based solely on current market conditions.
“The moment an underwriter is making decisions predicated only on 2026, you’re going to be in trouble because the market will evolve,” he said. “You need to be thinking about what that looks like for your organization long term, as well.”
That emphasis on long-term underwriting discipline is shaping insurers' approach to growth opportunities in the current environment. But while some carriers may pursue scale aggressively during the softer phase of the cycle, Intact Specialty Solutions intends to remain selective, Beal said.
“We’re really telling our folks: stay focused on what you’re doing, know your goal,” he said. “I personally believe the goal is not to grow. Growth is an outcome of the appropriate behaviors. If you remember that, then you’ll end up doing the right things.”
Intact operates across Canada, the UK and Europe, and the United States, with the ability to conduct business in 150 territories globally. The company has more than 30,000 employees and an approximately $24 billion market capitalization.
While Intact has a dominant position in Canada, where it is the country’s largest insurer, Beal acknowledged the company still has work to do to build awareness in the US.
Rather than targeting a single industry segment, however, Intact Specialty Solutions is focusing on profitable growth opportunities where its underwriting expertise and product offerings can align with broker and client needs.
“This is a marketplace where, while there are headwinds, we’re still looking at acquisitions, we’re looking for ways to advance in terms of verticals,” Beal said. “We think this is an opportunity to really step into the marketplace. Since we have financial stability, product solutions, and great people, this feels good for us.”
