Artex’s Alternative View — Spring 2026 presents a notably improved picture for the US property insurance market, with buyers benefiting from what the firm describes as the most supportive environment seen in several years. Strong capacity and a clear appetite among insurers to grow their property books have encouraged many insureds to revisit programme structures, ease previously tight terms, and in some placements obtain lower deductibles.
The report also pointed to a relatively manageable natural catastrophe backdrop in 2025. While insured losses were affected by the California wildfires in January, the absence of a US hurricane landfall for the first time since 2015 helped moderate broader market pressure. After several years marked by persistent pricing increases, catastrophe-exposed layered and shared property programmes have now begun to see meaningful rate relief.
Valuation pressure around large-scale data centres
Artex highlighted property valuation accuracy as an ongoing challenge across the market, with the issue becoming especially significant for data centres, one of the fastest-expanding segments in commercial property. Growth in artificial intelligence infrastructure is driving hyperscalers and colocation operators to develop increasingly large facilities designed to process, store, and transmit enormous volumes of digital data.
According to the report, global investment in data centre infrastructure could approach USD7 trillion by 2030, with around 40% expected to be spent in the US. These facilities often carry total insured values ranging from USD1 billion to USD5 billion, reflecting the concentration of costly assets such as servers, backup systems, and cooling technology. Their scale also means many are built in remote areas that may carry exposure to severe convective storms or wildfire activity, adding further complexity for underwriters and brokers.
Artex’s observations align with broader market attention on hyperscale projects, a segment that is expanding quickly but also becoming more selectively approached by re/insurers as construction values, operational complexity, and catastrophe exposure rise together.
Casualty lines remain under strain despite pricing action
In contrast with the improving property environment, Artex argued that the US casualty market continues to face structural difficulties that cannot be resolved through premium increases alone. The report stressed that external pressures, including litigation funding and social inflation, are still driving deterioration across many casualty classes. Unlike general economic inflation, social inflation is viewed as harder to restrain and more influential in pushing claim severity higher.
One major consequence has been the continued growth of nuclear verdicts, typically defined as jury awards above USD10 million. Artex said this trend is making it increasingly difficult for insurers to assess casualty exposures accurately and to set pricing and limits with confidence. Umbrella and excess liability policies, which are intended to protect companies against especially large awards beyond primary coverage, have come under particular pressure.
Insurers have responded by moving attachment points upward, especially in general liability and commercial auto, while also tightening exclusions. Artex noted that commercial auto has been hit harder than any other casualty segment by the rise in nuclear verdicts. Supporting that view, the American Transportation Research Institute reported in 2025 that both the frequency and severity of such verdicts had increased, with the median award reaching USD36 million by 2022, up 50% from the 2013 median.
