Bermuda's insurance market can expect to welcome a “Class of 2026”, an advisory, broking and solutions company has reported.

Willis Towers Watson’s presentation entitled Insurance Marketplace Realities 2026, published in October, delves into trends and rate forecasts for continental insurance buyers.

But it also provides insight into the future of the Bermuda insurance market.

It said the new year should bring additional carriers onto the island, each with varying appetites for attachment levels and occupancy types.

The report said the market is experiencing a mix of stability in financial lines, cautious easing in casualty, and significant shifts in property rates.

Developments in 2025 underscore the Bermuda market’s ability to provide stable execution for complex risks, while adapting quickly to shifting global conditions.

In an overview for the year ahead, WTW foresees further softening: “Loss-free, non-catastrophe programmes are likely to see low-double-digit decreases, CAT-exposed accounts high single-digit decreases, and loss-impacted risks flat to modest increases.”

Reinsurance capacity remains supportive, and the January and April renewals will be pivotal in setting direction, though pricing is expected to remain stable or ease slightly if losses stay near long-term averages.

Financial lines remain stable with predictability in directors & officers insurance, cyber, and employment practices liability.

Casualty rates are flat to 6 per cent higher, with challenging risks seeing increases of 5 to 20 per cent.

Property rates are decreasing by 10 to 20 per cent for favourable risks, with aggressive competition redefining market dynamics. Challenging risks are flat to 12.5 per cent.

There remain pockets of pressure for wage & hour and lawyers errors & omissions.

The report said: “Casualty, although still priced firmly, shows the first signs of moderation in years, with appeals softening nuclear verdicts and new entrants hinting at capacity growth. Property stands apart as the most dramatic shift, with abundant capital, aggressive competition and double-digit decreases for clean accounts redefining the market dynamic.”

WTW reports an abundance of capacity, especially in excess-of-loss layers, for preferred, softer occupancies, with carriers seeking to maximise their deployed capital, including offering multiyear deals for non-CAT layers.

“Some insurers are reviewing and adjusting distribution models to consolidate and maximise revenue. Despite strong competition, underwriting discipline is being maintained, with emphasis placed on long term, multiline, relationship-based business.”

Meanwhile, the report also commented that the introduction of Bermuda’s Corporate Income Tax regime has generated opportunities for new captive formation, contrary to expectation.

The report says the opportunities are specialised in nature and concluded: “We are not aware of captives leaving Bermuda because of CIT currently.”

The 2026 outlook for captive insurance will continue trends observed in 2025, as captives continue to be further embedded in enterprise risk management strategies, not only to help save costs, but as a strategic enabler of resilience and risk financing innovation.