Economic pressure, supply-chain

shifts, labor shortages, and

changing legal environments are real

 Some industries are carrying exposures that look materially

different than they did even 18 months ago, while others are benefiting

from underwriting assumptions that no longer match current operational trends.

By Michael Wayne 

Insurance markets rarely move in perfect synchronization. Even in periods of broad stabilization, pricing accuracy tends to lag operational reality even when there are periods of broad stabilization. This disconnect creates pockets where certain commercial accounts are either underpriced, overpriced, or simply misunderstood relative to their actual exposure.

In 2026, that lag has become more noticeable.

Economic pressure, social inflation, supply-chain shifts, labor shortages, and changing legal environments have quickly altered risk characteristics, and many underwriting models aren’t adapting fully.

Some industries are carrying exposures that look materially different than they did even 18 months ago, while others are benefiting from underwriting assumptions that no longer match current operational trends.

For producers, identifying these disconnects matters. Mispriced business creates both danger and opportunity. If accounts deteriorate unexpectedly, it’s dangerous. If brokers understand where markets may eventually correct, that’s an opportunity.

Here are the top five commercial accounts most likely to be mispriced right now.

Habitational real estate accounts still carrying “old world” property assumptions
On paper, some apartment and multifamily portfolios appear more stable today than they did during the peak of the hard market. Rate increases have moderated in certain regions, and some carriers are cautiously re-entering portions of the space. Many habitational accounts, however, still carry structural pressures that underwriting models may not fully capture.

In short, habitational business remains one of the most unevenly priced segments in commercial property.

Deferred maintenance remains widespread following several years of elevated repair costs and financing strain. Older plumbing systems, aging electrical infrastructure, and roof deterioration continue to drive water damage and fire losses.

At the same time, replacement costs remain elevated despite slower inflation growth. The real disconnect is that some pricing assumptions still reflect pre-2022 maintenance standards and operating margins that no longer exist.

For producers, this means there is a need for closer scrutiny of inspection reports, capital improvement schedules, and reserve funding matters more than ever. Two apartment complexes with identical values can represent entirely different risk profiles depending on how aggressively ownership deferred upgrades over the last three years.

Regional trucking and logistics fleets facing hidden severity exposure

Commercial auto remains difficult, but some regional fleet accounts may still be materially underpriced relative to actual severity trends. The issue is not frequency alone but a growing combination of:

• “Nuclear verdict” exposure
• Distracted driving litigation
• Repair inflation
• Driver turnover
• Rising medical costs tied to bodily injury claims

Many fleets have adapted to economic pressure by operating leaner staffing models, extending equipment replacement cycles, or relying more heavily on inexperienced drivers. Those operational shifts do not always appear clearly in standard underwriting submissions.

Concurrently, plaintiff attorneys continue expanding litigation strategies around negligent hiring, telematics data discovery, and fleet supervision practices. The result is an environment where a single severe claim can destabilize years of underwriting profitability.

Producers working in transportation should expect continued pressure on umbrella and excess auto pricing, even where primary market competition appears more stable.

Food and beverage manufacturers navigating supply chain volatility
Many companies have changed suppliers, reformulated products, altered storage practices, or shifted distribution models in response to commodity costs and trade volatility. Those operational changes often happen quickly and not always with corresponding updates to underwriting information.

Because of that, food manufacturing may be one of the most operationally stressed segments in the middle market right now. The exposure concern is broader than contamination risk alone and includes:

• Equipment breakdown tied to deferred maintenance
• Product recall exposure from new ingredient sourcing
• Cold storage vulnerabilities
• Business interruption from transportation disruption
• Workforce safety concerns tied to labor shortages

Some carriers are still underwriting portions of this class based on assumptions that existed before tariff disruption and persistent commodity instability reshaped operational behavior.

This creates the possibility that portions of the segment are underpriced relative to actual volatility.

Producers who ask detailed operational questions will likely identify significant differences between nominally similar accounts. Producers who only ask application questions are doing their clients a disservice.

Healthcare support services carrying expanding professional liability exposure
Healthcare support operations, including home healthcare, staffing firms, outpatient support vendors, and medical transportation providers, have changed significantly over the last several years.

Demand remains elevated, but staffing pressure and burnout continue affecting operational consistency across the sector. Many organizations are relying more heavily on:

• Contract labor
• Rapid onboarding
• Expanded patient loads
• Technology-assisted care systems

The challenge is that liability exposure is broadening faster than traditional underwriting classifications may reflect. Professional liability concerns are increasingly overlapping with cyber exposure, employment practices issues, and operational negligence allegations. Even relatively small incidents can escalate quickly once patient care disruption becomes part of the claim narrative.

Some portions of the sector still appear competitively priced because carriers continue chasing healthcare premium volume. Underlying severity trends, however, suggest certain subclasses may ultimately experience sharper correction.

For producers, understanding staffing ratios, turnover trends, and technology reliance has become just as important as reviewing loss runs.

Renewable energy contractors operating in an evolving liability environment
Renewable energy construction and service firms have experienced rapid growth, but underwriting sophistication has not always kept pace with operational complexity. Solar, battery storage, EV infrastructure, and utility-scale renewable projects create layered exposures involving:

• Construction defect liability
• Professional liability crossover
• Product performance disputes
• Fire exposure tied to battery systems
• Contractual risk transfer issues

Many firms in the sector are scaling rapidly, entering new territories, and working under aggressive project timelines. This growth environment can create inconsistencies in subcontractor oversight, safety protocols, and quality control.

Simultaneously, some carriers remain eager to participate in renewable energy business because of long-term growth expectations and ESG-driven market interest. This combination may be creating pricing disconnects in certain areas of the sector, in particular where operational maturity has not kept pace with revenue growth.

For producers, this is a class where detailed operational storytelling matters enormously. Accounts that appear similar at first glance may differ dramatically in subcontractor management, engineering oversight, and contractual liability structure.

Producers must remember that mispricing works both ways. Some accounts are carrying more exposure than current pricing reflects. Others may be overpriced because underwriting models are relying too heavily on older assumptions that no longer align with current operational behavior.

Remember, the opportunity is not simply identifying where rates will rise next. The opportunity lies in understanding where operational reality and underwriting perception have drifted apart.Top of Form

The author

Michael Wayne is an insurance and risk management freelance writer.