The Big Question: Are specialist commercial lines the answer to soft market rate pressure?

Nick Giddings, director, partners and distribution, Open GI

The appetite for specialist lines reflects a broader shift in how commercial risks are being assessed, priced and traded.

In a soft market, when premium reductions are putting pressure on broker income, growth cannot simply come from writing more of the same business.

According to our recent article entitled Why eTrading is becoming a competitive advantage, specialist was the only commercial line to record growth in Q2 2026 – increasing 4.1% – while premiums fell across every region.

That suggests there are opportunities beyond competing purely on price – particularly where brokers can access markets and products that meet more specific client needs.

Technology is playing an important role in making that possible.

ETrading is no longer limited to straightforward risks. Insurers are widening their digital appetite, increasing limits and thresholds and using data, analytics and telematics to gain greater confidence in the risks they write.

At the same time, platforms are increasingly able to handle referrals, allowing more complex risks to remain within the digital journey rather than reverting to manual processes.

For brokers, that creates an opportunity to differentiate through the breadth of markets they can access, the quality of advice they provide and how effectively they use data to identify opportunities within their existing client books.

In a soft market, standing out is therefore less about trying to win every risk on price and more about finding where there is genuine demand and matching it with the right insurer appetite.

The brokers that combine specialist expertise with connected digital trading will be better placed to uncover growth opportunities, while also reducing the administrative friction that can erode margins.

John Dunn, managing director, Brokerbility

The soft market has made one thing abundantly clear – competing on price alone is a race to the bottom.

So where does the opportunity lie? Increasingly, it is in the ability to bring specialist expertise to the client’s risk.

That could be through specialist lines of business where exposures are becoming more complex and less easily addressed through a standard commercial policy.

The opportunity is not simply to sell another specialist product. It is to take a broader view of the client and look at their business through different lenses.

Take a golf club. A traditional assessment of its exposures might focus on the fire risk associated with a historic clubhouse, property damage or public liability.

But what happens if the club relies heavily on its website to attract members, take bookings and process payments? Does that create a different and potentially significant cyber exposure? Could identifying that risk and bringing specialist expertise to address it become a genuine point of differentiation?

That is where specialist lines can become more than a product solution. They can provide a different way of understanding the client.

In a soft market, where capacity is plentiful and price competition is intense, this can help move the conversation away from price and towards insurers that truly understand a client’s business and its risks.

Technology and data can help brokers identify these emerging exposures, but specialist knowledge remains critical in interpreting them.

The differentiator is not necessarily having the biggest range of products – it is being able to spot the risks others may overlook and bring the right expertise to solve them.

Craig Watson, UK regional market underwriter, Kayzen Specialty

The appetite for specialist, lived-in underwriting reflects a growing recognition that specialist lines risks cannot always be effectively assessed through standardised, online or data-determinative solutions.

That is particularly relevant across specialist directors’ and officers’ (D&O), financial lines and financial institutions underwriting, where understanding the individual client is critical.

The underlying risk can vary significantly depending on the business model, governance, financial position, management team, global reach and regulatory environment – and this information can be difficult to quantify. Two clients may look identical on paper, yet require very different underwriting approaches.

At Kayzen, we deliberately avoid an online, commoditised approach and make every quote bespoke to the client’s needs.

That means engaging with brokers, asking the right questions and applying experienced underwriting judgement to create coverage that meets the actual risk.

In a soft market, this becomes increasingly important. With capacity available and rate under pressure, competing purely on price can make it difficult to differentiate and risks reducing underwriting to a commodity.

In a market where capacity has become plentiful but underwriting capability has not, specialist expertise provides a route to standing out.

Brokers are looking for a genuine underwriting partner – someone who understands the risk, is available to discuss it and is willing to find solutions rather than simply provide a price.

For clients, that translates into coverage that is more closely aligned to their specific exposures.

Ultimately, specialist knowledge allows underwriters to demonstrate value beyond rate. Differentiation comes from expertise, judgement, responsiveness and relationships.

In a soft market, that combination can help underwriters compete on the quality of their proposition rather than simply on price.

Chrissy Smith, global relationship leader, Zurich UK

Many businesses are currently operating in a volatile landscape and the specialist lines cover we offer allows us to really differentiate the service and expertise we bring to the market.

Our specialist lines are evolving constantly in response to emerging risks and we’re also able to create bespoke products to match novel business approaches.

In a soft market, this allows us to demonstrate value that goes beyond price alone.

Historically, specialist lines may have been considered more relevant to large, multinational organisations, but SMEs and midmarket businesses are increasingly exposed to the same regulatory, technological and operational challenges, creating a growth in demand.

Whether it’s the interplay between artificial intelligence (AI) and cyber risk, or the importance of liability cover and business interruption to major construction projects, we help make sure clients and brokers have considered the full range of threats they need to address.

We’ve increased our emphasis on ensuring that customers and brokers can access the full suite of our services through a single contact point and working closely with them in this way allows us to develop a more detailed understanding of their needs and how we can best meet them.

Specialist lines play a key role in helping us create those deeper client relationships.

Adam Atkins, commercial underwriting director, Hiscox UK

The appetite for specialist lines is being driven by the growing complexity of risk.

Clients increasingly want confidence that their insurer understands the realities of their business and can provide cover that reflects sector-specific exposures, rather than relying on a one-size-fits-all approach.

Professional indemnity is a good example. As regulatory, contractual and technology-related risks continue to evolve, brokers are looking for insurers that can offer more than broad policy wordings.

They value underwriters with deep expertise who can assess risks on their individual merits and provide tailored solutions for more complex businesses.

However, true specialism extends beyond underwriting.

The strongest specialist insurers combine underwriting expertise with dedicated claims teams that understand the industries and professions they serve.

When a claim occurs, that knowledge can make a meaningful difference to customer outcomes, helping clients navigate complex situations with confidence and minimising disruption to their business.

That becomes particularly important in a soft market.

While price will always matter, competing on rate alone is rarely sustainable. Specialist propositions allow insurers and brokers to focus the conversation on expertise, service and claims support, creating value that extends well beyond premium.

The insurers that will stand out are those that can demonstrate genuine specialist capability throughout the customer journey, from underwriting through to claims.

Neal Lumb, executive director, sales and marketing, Verlingue

As commercial insurance markets continue to soften, businesses are becoming increasingly selective about where they spend their insurance budget.

While competition and falling rates are creating pressure in many traditional classes, demand for specialist lines remains strong because the risks facing businesses are becoming more complex, interconnected and difficult to transfer through standard insurance solutions alone

Areas such as cyber, management liability, credit, environmental and other specialist covers address emerging and evolving exposures that are often closely linked to a client’s growth strategy, supply chain resilience, governance framework and technology dependency.

As a result, conversations around specialist lines tend to be driven less by price and more by expertise, advice and risk outcomes.

For brokers, this creates a valuable opportunity to differentiate in a soft market. When rates are falling, competing on premium alone becomes a race to the bottom.

However, brokers who can demonstrate genuine technical expertise, sector knowledge and a consultative approach can have more strategic conversations with clients about risk rather than simply insurance placement. That shifts the discussion from cost to value.

Specialist lines also provide a natural route into broader risk-management conversations. Clients increasingly want advisers who understand their industry, can identify emerging exposures and can access specialist markets and solutions.

Brokers that invest in these capabilities are far better positioned to build long-term relationships, protect margins and stand out from competitors who are focused solely on price.

In a soft market, expertise becomes the differentiator. While price will always matter, clients increasingly value advisers who understand their industry, can identify emerging risks and provide access to specialist solutions.

The winners in the next phase of the cycle won’t be those offering the cheapest premium, but those able to demonstrate the clearest expertise, strongest sector insight and most relevant specialist advice.