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A shaken real estate market finding its feet - and why relationships still rule
9 July 2026
Read time: 5 minutes
By Neil Pickard, Director of Real Estate, at Intact Insurance.
There’s no shortage of debate about the status of the real estate insurance market. Does it feel more competitive now than in recent years? You’d be hard pushed to find anyone who says otherwise.
Pricing pressure has felt more relentless than usual. Not least due to capacity coming into the market with what appears to be a greater appetite for short-term growth at all costs, rather than long-term sustainability. But even if the recent past has been challenging, I do sense that we are now starting to see the situation settle.
The market is still competitive, but we’re starting to see more discipline return. Capacity is there, but not all of it is equal.
At Intact Insurance, we’re seeing this play out in real time, with more conversations moving beyond price and towards how risk is understood and managed. Let’s be honest, this has never been a market that’s worked solely on price, and never will in the long term.
Real estate insurance is still a relatively small brokerage market - insurers, brokers and clients who largely know each other. Yes, there are plenty of risk owners who look solely at the numbers, but decisions are also influenced by trust, service and track record. Underwriters’ assessments matter too. It’s why I think relationships are more important now than ever.
In addition to market dynamics, several broader factors continue to shape thinking around risk.
Inflation is a good example. Having seen rebuild costs soar following COVID-19, there’s now greater stability. This is helping to ease some of the underinsurance issues that many struggled with when they couldn’t keep up with such rapid increases.
But it would be foolish to think that this risk is gone completely. There are still many unknowns from a geopolitical standpoint which could see inflationary pressure return. The industry needs to stay vigilant.
We’re also seeing the nature of assets themselves start to change. The increased use of sustainable materials, for example cross-laminated timber, is encouraging from an environmental perspective. From an underwriting standpoint, it does raise new questions around how these products will perform over the longer term. There’s limited claims history so far and the market still has much to learn.
Climate risk is already shaping underwriting decisions - particularly for portfolios exposed to flood, wildfire and supply chain disruption. The UK has been relatively quiet on the catastrophe front in recent years which has obviously helped drive market performance. But we know these incidents don’t happen on a regular cycle. One of the challenges with weather events is, of course, planning for the future without knowing when or how severe they will be.
So, what else is under consideration? It seems obvious, but clients and brokers don’t just want a great price from their insurer. Whilst cost certainly plays a role in decision making, there’s an increasing recognition that the lowest quote isn’t always the one that holds up when cover is needed most.
A great claim journey is another example of what clients want. Brokers quite rightly place significant emphasis on claims performance. This aspect is under more scrutiny than ever. How quickly an insurer responds, how they communicate with clients, and whether they can make meaningful interim payments can all help define that experience. It’s where reputations can be won or lost.
Service is another area that’s firmly back on the agenda. In a fast-paced, price-sensitive market, being responsive and accessible is also key. Brokers want to work with people they like and who are switched on, present and looking for solutions rather than telling them why things can’t be done.
As a team, now operating as Intact Insurance in the UK, we have had opportunity to reconsider how we operate as a team.
Over the past few months, we’ve deliberately changed how we show up - more visible, more accessible, and closer to brokers and their customers. It’s already changing the conversations we’re having and the opportunities we’re seeing.
Similarly, there has been an internal cultural shift. We’re working better across functions and operating with greater efficiency. There is a can-do attitude throughout the team.
Since we joined the Intact fold, I really feel we’ve found our identity and a confidence in where we are headed.
So far, so good. But what does success look like in real terms?
One of our first major placements, a pan-European programme in the double-digit millions, wasn’t won on price alone. It came down to coordination across various teams and confidence in how the risk would be managed.
Led out of our London office, the deal required extensive coordination between our teams here and our Global Network team.
The premium figure is obviously a good headline. But for us, it signalled that we are firm contenders for underwriting large, complex risks. That we are top of mind for brokers when they think of a market performer, and it shows customers we can support them with the breadth and depth of our wider platform.
We’ve also received really positive feedback from brokers over the past few months, particularly around service levels and our responsiveness to requests. We don’t take this for granted by any stretch but it does suggest we’re heading in the right direction.
The foundations we’re building are created from a mix of what we’ve carried forward from previous legacy businesses. Plus, there are changes we’ve implemented over the past year under new ownership:
So, where do we go from here? If I’m being totally honest, our ambition is quite simple; to build long-term, genuine relationships with clients and brokers, and be consistent across every single interaction.
That starts with engaging sooner rather than later. It means having the technical expertise to understand and navigate today’s risks. It means continuing to invest in our claims capability and service standards. As Intact Insurance, we have the capability to do this.
In real estate insurance, there will always be pressure on price and the market will remain competitive. The brokers who succeed will be those who look beyond price and partner with insurers who can bring clarity, consistency and real underwriting insight.
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