• Increased competition and returning capacity are driving improved pricing and flexibility, with some accounts seeing flat renewals or rate decreases, particularly those with strong risk profiles.
• Market improvements are uneven: higher-risk industries, CAT-exposed accounts and those with losses continue to face firm pricing and limited capacity.
• Robust underwriting data, strategic program design and tools like stock throughput (STP) solutions are key to securing better terms and maximizing outcomes in the evolving market. 

After several challenging years, the manufacturing property insurance market is starting to loosen. Capacity is returning to the E&S space, competition among carriers is increasing and insureds are regaining negotiating power.

While the shift is clear, this should not be interpreted as a return to an overly soft market. Carriers are still being careful with how and where they deploy capacity, especially on more complex and high-risk manufacturing accounts.

Competition improves pricing and terms

One of the most noticeable changes in the market is the rise in competition. Carriers that stepped back during the hard market are once again looking to grow, leading to more flexible pricing and broader participation across program layers. For many manufacturing risks, this has resulted in flat renewals or rate decreases – particularly for accounts with minimal loss history and solid risk management.

However, we are not seeing improvements across all segments. Higher hazard subsets, such as heavy recycling or wood products, as well as those with significant CAT exposure or recent losses, continue to be treated with caution. For these risks, pricing remains firm and capacity can be limited.

Reinsurance conditions support market movement

Stabilizing reinsurance rates are helping to drive this shift. As reinsurance costs level out, and even improve, primary insurers are expanding their appetite. This has helped enable carriers to consider risks and coverage structures that were often restricted in recent years during some of the most challenging market conditions.

Now is the time to reexamine existing programs, reengage markets that were previously unavailable and adjust structures to better align with today’s environment. Renewals that were once defensive are now being approached more strategically.

London capacity

The hard market correction has continued to pay off in London, leading to strengthened capacity and eagerness to write new business. Interest in manufacturing property risks remains strong and after a profitable 2025, capacity continues to expand. This added capacity is increasing competition on layered programs and providing more options for larger and more complex accounts.

Underwriting discipline persists

Although underwriting standards have relaxed somewhat, carriers have not lost focus on risk quality. Requirements that were strictly enforced during the hard market, such as the need to provide detailed engineering reports, are no longer deal-breakers in every case.

Still, as competition grows, clear and accurate information remains one of the most effective ways to improve outcomes. Insureds that provide strong, well-organized risk data continue to stand out. These accounts often receive better pricing, broader terms and increased capacity.

Utilization of STP programs to offer well rounded solutions

Stock throughput (STP) programs are another tool being used strategically for this class of business. Moving stock exposure out of traditional property programs and into specialized STP placements can lead to lower rates and more efficient deductibles. This approach helps reduce volatility tied to inventory values and can improve overall program structure.

From a carrier perspective, removing stock exposure helps stabilize the remaining property risk; this can encourage additional capacity and more favorable terms on core manufacturing locations. You can learn more about STP and how Amwins can help here.

Takeaway

Overall, the manufacturing property market is moving toward balance. Capacity and competition are improving, giving insureds more room to negotiate than in recent years. Even so, strong outcomes still rely on thoughtful program design, solid data and effective market engagement.

Companies that take a proactive approach will be best positioned to benefit from a market that is improving, but still selective.

We help you win

Companies across the entire product supply chain — from design to sales — face a wide range of risks that don't always fit neatly into standard manufacturing and distribution insurance programs. No matter the type of manufacturing your clients need to insure, Amwins' industry specialists have the expertise and market access to offer a broad range of coverages. This includes product liability, product recall, business interruption, cargo stock throughput and more. 

Contact an Amwins broker today to learn more.

• Conner Patterson, SVP, Amwins Brokerage