Commercial insurance rates rise slower as NY underwriters focus on risk management

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Commercial insurance rates continued to climb in early 2026, though at a slower pace than in recent years, according to a recent industry survey. As the market shifts and underwriting standards evolve, we asked local professionals what insurers are prioritizing and what business owners can do to strengthen their risk profile.

“Aside from the type of industry and business operations, insurers are reviewing the financial stability and risk management practices of current and potential customers,” said Greg Knicley, area senior vice president, Gallagher Retail Brokerage, about the biggest factors insurers are evaluating when underwriting businesses today.

Knicley explains that insurers evaluate the financial health of a business to ensure it can meet its obligations, including paying premiums, and a profitable business is less likely to cut corners on safety and compliance, reducing risk exposure.

“Businesses with strong safety measures are viewed as a lower risk,” he said. “Adherence to industry regulations and standards also reduces liability risks.”

Knicley said underwriting expectations have become increasingly data-driven in recent years, with insurers relying more heavily on predictive modeling and analytics to forecast potential losses.

“Insurers are leveraging big data, artificial intelligence and machine learning to assess risks more accurately,” he said. “This includes analyzing historical claims data, market trends and external data sources.”

That increased scrutiny, he said, means businesses are being evaluated more holistically than ever before, with underwriters looking beyond claims history to assess operational resilience, cybersecurity readiness and long-term financial stability.

He said businesses that can clearly demonstrate sound internal controls and a proactive approach to risk often stand out more favorably in the underwriting process.

“Businesses can strengthen their risk profile by making transparency part of their insurance story,” Knicley said. “A healthy balance sheet, consistent profitability, low debt levels and clear compliance records help show insurers that the business is disciplined, stable and committed to managing risk.”

He added that formal risk management plans, strong cybersecurity controls and business continuity strategies can also improve insurability by demonstrating preparedness before a loss occurs.

“AI and cybersecurity are quickly becoming two sides of the same risk conversation,” Knicley said. “As businesses adopt more digital tools, they need to understand not only how those technologies can create efficiency, but also how they can introduce new exposures tied to data, operations, intellectual property and reputation.”

Brett Findlay, senior vice president and construction practice leader at OneGroup, said underwriting in the construction space starts with measuring exposure, but risk management practices can have a major impact on pricing and eligibility.

“First and foremost, insurance underwriters are looking to gauge risk and then quantify that risk via exposure,” he said. “To put that into perspective, exposure for a construction company could be gross sales, payroll or sub-contracting costs in most instances.”

Findlay said carriers apply rates based on the type of work being performed and the level of risk associated with it, but beyond the numbers, underwriters are increasingly evaluating how well businesses manage risk.

“The aspect that not as many people talk about is the risk management strength of the operation that the underwriter is looking at and how that can affect pricing and program eligibility,” he said.

Findlay pointed to three key areas construction firms should prioritize: contractual risk transfer, risk management and loss control, and safety program adherence.

“Contractual risk transfer (sub-contractor’s agreement) is critical in New York state,” he said. “If you don’t have proper risk transfer, many carriers will not even entertain your business.”

Findlay said having a proactive loss control strategy and clearly communicating that strategy to underwriters can also improve terms.

“A strong safety manual and adherence to it” can be a differentiator, he said, adding that accountability and consistency can become the “secret sauce” when negotiating coverage.

Findlay said the construction insurance market in New York is beginning to soften after several years of a hard market, but underwriting remains strict.

“The market is softening now for the first time in a long time, but stricter underwriting guidelines remain,” he said. “And with the development of technology and AI in the insurance world, models are changing.”

He also urged businesses to be strategic about broker relationships and to avoid flooding the market with multiple submissions.

“When underwriters and carriers receive the same account from multiple sources year after year, it can weaken the overall presentation,” Findlay said.

Looking ahead, he said contractors should pay close attention to automotive, cyber liability and pollution liability risks, all of which can carry significant financial consequences if left unaddressed.

Caurie Putnam is a Rochester-area freelance writer.