As the calendar turns to a new year, the first quarter often sets the tone for insurance pricing, underwriting behavior, and risk strategy for the months ahead. Q1 2026 is shaping up to be a period where preparation, data accuracy, and strategic alignment will matter more than ever.
Understanding the trends emerging early in the year can help businesses avoid surprises and position themselves for stronger outcomes.
Underwriting Scrutiny Will Increase Early
Carriers typically enter Q1 with fresh loss data, revised appetite guidelines, and pressure to improve portfolio performance. In 2026, underwriters are expected to scrutinize accounts more closely, particularly around payroll accuracy, revenue consistency, loss trends, and risk controls.
Businesses with clean data, clear narratives, and documented improvements will stand out. Those relying on outdated information or assumptions may face tighter terms or reduced options.
Claims History Will Carry More Weight
Claims from 2025 will heavily influence early 2026 underwriting decisions. Open claims, inflated reserves, and unexplained losses will draw attention in Q1, especially for workers compensation, liability, auto, and property programs.
Organizations that proactively reviewed loss runs and corrected inaccuracies before year-end will have a measurable advantage during early-year discussions.
Cyber Risk Will Remain a Top Concern
Cyber exposure continues to evolve, and Q1 2026 underwriting is expected to reflect heightened concern around ransomware, social engineering, and business interruption losses.
Underwriters are increasingly focused on cyber controls, incident response planning, and policy sublimits. Businesses that can demonstrate preparedness and realistic coverage alignment will have more leverage when negotiating terms.
Property Valuations and Inflation Pressures
Replacement cost accuracy remains a major issue heading into 2026. Inflation, labor costs, and material pricing continue to affect property valuations, and underwriters are paying closer attention to underinsured locations.
Q1 is a critical window to review statements of values and ensure coverage aligns with current rebuilding costs before midyear market tightening.
Workers Compensation Focus on Payroll and Class Codes
Workers compensation programs will continue to face scrutiny around payroll estimates, class code assignments, and experience modifiers. Changes in workforce structure, automation, or job duties implemented in 2025 may affect pricing in 2026.
Addressing discrepancies early helps avoid audit surprises and creates more predictable costs throughout the year.
Liability and Umbrella Capacity Considerations
Umbrella and excess liability markets remain selective. Early 2026 placements will favor accounts with consistent risk management practices, clean loss histories, and clearly defined exposure profiles.
Waiting until later in the year to address limit adequacy or structural gaps may reduce available options or increase pricing pressure.
Planning Ahead Creates Leverage
The most consistent trend in Q1 is that prepared accounts perform better. Businesses that treat the first quarter as a planning phase rather than a reaction phase gain leverage with carriers and control over outcomes.
Early engagement allows time to correct issues, market strategically, and align coverage with evolving operations.
How Skyscraper Insurance Helps You Prepare
At Skyscraper Insurance, we work with clients to translate market trends into actionable strategy. Our Q1 planning process focuses on underwriting readiness, claims positioning, coverage alignment, and cost control.
Starting the year with clarity and preparation helps ensure the rest of 2026 is built on a strong foundation.
A Q1 planning call can help you understand what to expect, what to prioritize, and how to stay ahead of the market.
