As we enter 2026, the property insurance sector is transitioning into what we call a ”Soft Market.” After several years of aggressive premium hikes and restricted capacity, we are finally seeing more insurers competing for business, leading to a general softening of rates. However, for your landlord clients, there is a catch: this isn’t a “blanket” discount.
In a typical soft market, insurers have an appetite for growth and are willing to lower premiums to win market share. While this is great news for your clients’ cash flow, 2026 is unique because it is the first soft market occurring in the age of Hyper-Granular Data.
In previous cycles, a soft market meant everyone’s premium stayed flat or dropped. This time, insurers are being “selectively soft.” They are using AI-driven satellite imagery and real-time environmental data to cherry-pick the best risks.
What this means for your clients:
- The Divide: A landlord with a well-maintained property and digital proof of “climate-resilient” upgrades (such as modernised roofing or flood mitigation) will see the full benefit of this soft market, with premiums dropping significantly as insurers fight for their business.
- The “Legacy” Penalty: Conversely, landlords with “passive” portfolios or unverified maintenance records may find their premiums remain stagnant or even rise, despite the soft market. Insurers are no longer willing to “subsidise” high-risk, poorly managed properties just to get volume.
When you are discussing refinancing and portfolio yields with your clients, remind them that maintenance is now a financial instrument. In a soft market, the “Quality Premium” is real.
Our goal this year is to ensure that the portfolios you are financing remain robust and insurable. If you have a client navigating a complex refinance or a first-time landlord entering the market under these new rules, let’stalk.
Providing the right insurance context early in the mortgage application process doesn’t just protect the asset, it protects your advice.
